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2006 | OriginalPaper | Chapter
An Integrated Production-Inventory Model for Deteriorating Items with Imperfect Quality and Shortage Backordering Considerations
Authors : H. M. Wee, Jonas C. P. Yu, K. J. Wang
Published in: Computational Science and Its Applications - ICCSA 2006
Publisher: Springer Berlin Heidelberg
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In this study we present a production-inventory model for deteriorating item with vendor-buyer integration. A periodic delivery policy for a vendor and a production-inventory model with imperfect quality for a buyer are established. Such implicit assumptions (deteriorating items, imperfect quality) are reasonable in view of the fact that poor-quality items do exist during production. Defective items are picked up during the screening process. Shortages are completely backordered. The study shows that our model is a generalization of the models in current literatures. An algorithm and numerical analysis are given to illustrate the proposed solution procedure. Computational results indicate that our model leads to a more realistic result.