A Two-Echelon Deteriorating Production-Inventory Newsboy Model with Imperfect Production Process

  • Hui-Ming Wee
  • Chun-Jen Chung
Part of the Lecture Notes in Computer Science book series (LNCS, volume 3982)


This paper discusses a two-echelon distribution-free deteriorating production-inventory newsboy model. Distinct from previous models, this study considers a deteriorating commodity with the imperfect production process. The model also considers JIT (Just In Time) deliveries and integrates the marketing and manufacturing channels. This model can be used to solve the production and replenishment problem for the manufacturer and the retailer. We derive the optimal production size, the wholesale price and the optimal number of deliveries. The model takes an insight to the defect-rate reduction. We find an upper bound for the optimal number of material’s JIT deliveries. The necessary and sufficient conditions are explored to gain managerial insights and economic implications.


Wholesale Price Demand Distribution Economic Production Quantity Model Production Inventory Model Newsboy Problem 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.


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Copyright information

© Springer-Verlag Berlin Heidelberg 2006

Authors and Affiliations

  • Hui-Ming Wee
    • 1
  • Chun-Jen Chung
    • 1
  1. 1.Department of Industrial EngineeringChung Yuan Christian UniversityChungliTaiwan, ROC

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