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Optimizing pricing, replenishment and rework decision for imperfect and deteriorating items in a manufacturer-retailer channel

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  • Chen, Tsung-Hui

Abstract

In an imperfect manufacturing system, the production cost, inventory holding cost, and the performance of the supply chain are usually affected by imperfect items. Many studies focus on developing inspection and rework models for an imperfect manufacturing system, but few develop models for deteriorating items. The present study deals with the imperfect manufacturing system problem using the case of a two-echelon supply chain consisting of one manufacturer and one retailer. The non-cooperation and cooperation policies were used to investigate the combined effects of the pricing scheme, the replenishment program, imperfect quality, and the rework process for the deteriorating items. Several numerical studies have shown the effects of changing parameters on decision-making, and the sensitivity of profit improvement on the whole channel.

Suggested Citation

  • Chen, Tsung-Hui, 2017. "Optimizing pricing, replenishment and rework decision for imperfect and deteriorating items in a manufacturer-retailer channel," International Journal of Production Economics, Elsevier, vol. 183(PB), pages 539-550.
    • Handle: RePEc:eee:proeco:v:183:y:2017:i:pb:p:539-550
    DOI: 10.1016/j.ijpe.2016.08.015
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    1. Subrata Panja & Shyamal Kumar Mondal, 2023. "Sustainable production inventory management through bi-level greening performance in a three-echelon supply chain," Operational Research, Springer, vol. 23(1), pages 1-55, March.
    2. K.Y. Kung & Y.D. Huang & H.M. Wee & Y. Daryanto, 2019. "Production-Inventory System for Deteriorating Items with Machine Breakdown, Inspection, and Partial Backordering," Mathematics, MDPI, vol. 7(7), pages 1-26, July.
    3. Baishakhi Ganguly & Bikash Koli Dey & Sarla Pareek & Biswajit Sarkar, 2023. "Cost-Effective Imperfect Production-Inventory System under Variable Production Rate and Remanufacturing," Mathematics, MDPI, vol. 11(15), pages 1-24, August.
    4. Basim S. O. Alsaedi, 2024. "A Sustainable Supply Chain Model with Variable Production Rate and Remanufacturing for Imperfect Production Inventory System under Learning in Fuzzy Environment," Mathematics, MDPI, vol. 12(18), pages 1-49, September.
    5. Yunlong Yu & Tiaojun Xiao & Zhangwei Feng, 2020. "Price and cold-chain service decisions versus integration in a fresh agri-product supply chain with competing retailers," Annals of Operations Research, Springer, vol. 287(1), pages 465-493, April.
    6. Chua, Geoffrey A. & Mokhlesi, Reza & Sainathan, Arvind, 2017. "Optimal Discounting and Replenishment Policies for Perishable Products," International Journal of Production Economics, Elsevier, vol. 186(C), pages 8-20.

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