An Integrated Production-Inventory Model for Deteriorating Items with Imperfect Quality and Shortage Backordering Considerations
- Cite this paper as:
- Wee H.M., Yu J.C.P., Wang K.J. (2006) An Integrated Production-Inventory Model for Deteriorating Items with Imperfect Quality and Shortage Backordering Considerations. In: Gavrilova M. et al. (eds) Computational Science and Its Applications - ICCSA 2006. ICCSA 2006. Lecture Notes in Computer Science, vol 3982. Springer, Berlin, Heidelberg
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.
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