Computational Science and Its Applications - ICCSA 2006

Volume 3982 of the series Lecture Notes in Computer Science pp 885-897

An Integrated Production-Inventory Model for Deteriorating Items with Imperfect Quality and Shortage Backordering Considerations

  • H. M. WeeAffiliated withCarnegie Mellon UniversityDepartment of Industrial Engineering, Chung Yuan Christian University
  • , Jonas C. P. YuAffiliated withCarnegie Mellon UniversityLogistics Management Department, Takming College
  • , K. J. WangAffiliated withCarnegie Mellon UniversityDepartment of Business Administration, National Dong Hwa University

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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.