IDEAS home Printed from https://ideas.repec.org/a/eee/proeco/v189y2017icp1-13.html
   My bibliography  Save this article

An integrated production-inventory model for deteriorating items with consideration of optimal production rate and deterioration during delivery

Author

Listed:
  • Chan, Chi Kin
  • Wong, Wai Him
  • Langevin, A.
  • Lee, Y.C.E.

Abstract

Most of the literature of single-vendor single-buyer integrated production-inventory models for deteriorating items assumed a fixed production rate. Little attention has been paid to finding the optimal production rate for minimizing the total system cost. This paper investigates how production rate affects the total system cost, and develops a solution procedure for finding the optimal production rate for the traditional models. Based on the findings, this paper proposes an integrated single-vendor single-buyer model of an exponentially deteriorating item, in which non-stop production is considered and production rate is included as one of the decision variables. It has been shown, with numerical examples, that the proposed model can provide a lower cost solution than the traditional models which assume a fixed production rate. The proposed model also considers deterioration during deliveries, which is usually neglected in the literature of inventory models of deteriorating items. Furthermore, the proposed model is extended to relax the constant cost parameter assumption, which is prevalent even in non-constant production rate models, and optimize the cost for a system in which some of the cost parameters are production rate dependent.

Suggested Citation

  • Chan, Chi Kin & Wong, Wai Him & Langevin, A. & Lee, Y.C.E., 2017. "An integrated production-inventory model for deteriorating items with consideration of optimal production rate and deterioration during delivery," International Journal of Production Economics, Elsevier, vol. 189(C), pages 1-13.
  • Handle: RePEc:eee:proeco:v:189:y:2017:i:c:p:1-13
    DOI: 10.1016/j.ijpe.2017.04.001
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0925527317301202
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.ijpe.2017.04.001?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Yan, Changyuan & Banerjee, Avijit & Yang, Liangbin, 2011. "An integrated production-distribution model for a deteriorating inventory item," International Journal of Production Economics, Elsevier, vol. 133(1), pages 228-232, September.
    2. Kim, Taebok & Glock, Christoph H. & Kwon, Yongjang, 2014. "A closed-loop supply chain for deteriorating products under stochastic container return times," Omega, Elsevier, vol. 43(C), pages 30-40.
    3. Goyal, S. K. & Giri, B. C., 2003. "The production-inventory problem of a product with time varying demand, production and deterioration rates," European Journal of Operational Research, Elsevier, vol. 147(3), pages 549-557, June.
    4. Wu, Kun-Shan & Ouyang, Liang-Yuh & Yang, Chih-Te, 2006. "An optimal replenishment policy for non-instantaneous deteriorating items with stock-dependent demand and partial backlogging," International Journal of Production Economics, Elsevier, vol. 101(2), pages 369-384, June.
    5. Tiwari, Sunil & Cárdenas-Barrón, Leopoldo Eduardo & Khanna, Aditi & Jaggi, Chandra K., 2016. "Impact of trade credit and inflation on retailer's ordering policies for non-instantaneous deteriorating items in a two-warehouse environment," International Journal of Production Economics, Elsevier, vol. 176(C), pages 154-169.
    6. Balkhi, Zaid T. & Benkherouf, Lakdere, 1996. "A production lot size inventory model for deteriorating items and arbitrary production and demand rates," European Journal of Operational Research, Elsevier, vol. 92(2), pages 302-309, July.
    7. Balkhi, Zaid T., 1999. "On the global optimal solution to an integrated inventory system with general time varying demand, production and deterioration rates," European Journal of Operational Research, Elsevier, vol. 114(1), pages 29-37, April.
    8. Debashis Dutta & Pavan Kumar, 2015. "A partial backlogging inventory model for deteriorating items with time-varying demand and holding cost," International Journal of Mathematics in Operational Research, Inderscience Enterprises Ltd, vol. 7(3), pages 281-296.
    9. Widyadana, Gede Agus & Wee, Hui Ming, 2012. "An economic production quantity model for deteriorating items with multiple production setups and rework," International Journal of Production Economics, Elsevier, vol. 138(1), pages 62-67.
    10. Kim, T. & Glock, C. H. & Kwon, Y., 2014. "A closed-loop supply chain for deteriorating products under stochastic container return times," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 62024, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Pan, Fei & Zhou, Wei & Fan, Tijun & Li, Shuxia & Zhang, Chong, 2021. "Deterioration rate variation risk for sustainable cross-docking service operations," International Journal of Production Economics, Elsevier, vol. 232(C).
    2. Sudip Adak & G. S. Mahapatra, 2021. "Effect of inspection and rework of probabilistic defective production on two-layer supply chain incorporating deterioration and reliability dependent demand," International Journal of System Assurance Engineering and Management, Springer;The Society for Reliability, Engineering Quality and Operations Management (SREQOM),India, and Division of Operation and Maintenance, Lulea University of Technology, Sweden, vol. 12(3), pages 565-578, June.
    3. Dhahri, Akrem & Gharbi, Ali & Ouhimmou, Mustapha, 2022. "Integrated production-delivery control policy for an unreliable manufacturing system and multiple retailers," International Journal of Production Economics, Elsevier, vol. 245(C).
    4. Nidhi Handa & S. R. Singh & Neha Punetha, 2022. "Impact of carbon emission in two-echelon supply chain inventory decision with controllable deterioration and two-level trade-credit period," OPSEARCH, Springer;Operational Research Society of India, vol. 59(4), pages 1555-1586, December.
    5. Singa Wang Chiu & Liang-Wei You & Tsu-Ming Yeh & Tiffany Chiu, 2020. "The Collective Influence of Component Commonality, Adjustable-Rate, Postponement, and Rework on Multi-Item Manufacturing Decision," Mathematics, MDPI, vol. 8(9), pages 1-18, September.
    6. Raj Kumar Bachar & Shaktipada Bhuniya & Santanu Kumar Ghosh & Biswajit Sarkar, 2022. "Controllable Energy Consumption in a Sustainable Smart Manufacturing Model Considering Superior Service, Flexible Demand, and Partial Outsourcing," Mathematics, MDPI, vol. 10(23), pages 1-29, November.
    7. Bai, Qingguo & Gong, Yeming (Yale) & Jin, Mingzhou & Xu, Xianhao, 2019. "Effects of carbon emission reduction on supply chain coordination with vendor-managed deteriorating product inventory," International Journal of Production Economics, Elsevier, vol. 208(C), pages 83-99.
    8. Sudip Adak & G. S. Mahapatra, 2022. "Effect of reliability on multi-item inventory system with shortages and partial backlog incorporating time dependent demand and deterioration," Annals of Operations Research, Springer, vol. 315(2), pages 1551-1571, August.
    9. Xing Yu & Huaizhe Chen & Kongzhuo Xiang & Zhongkai Wan, 2021. "Supply chain financing mechanism with guarantee insurance," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 42(2), pages 308-318, March.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Bakker, Monique & Riezebos, Jan & Teunter, Ruud H., 2012. "Review of inventory systems with deterioration since 2001," European Journal of Operational Research, Elsevier, vol. 221(2), pages 275-284.
    2. Pahl, Julia & Voß, Stefan, 2014. "Integrating deterioration and lifetime constraints in production and supply chain planning: A survey," European Journal of Operational Research, Elsevier, vol. 238(3), pages 654-674.
    3. Alamri, Adel A. & Syntetos, Aris A., 2018. "Beyond LIFO and FIFO: Exploring an Allocation-In-Fraction-Out (AIFO) policy in a two-warehouse inventory model," International Journal of Production Economics, Elsevier, vol. 206(C), pages 33-45.
    4. Maiti, T. & Giri, B.C., 2017. "Two-way product recovery in a closed-loop supply chain with variable markup under price and quality dependent demand," International Journal of Production Economics, Elsevier, vol. 183(PA), pages 259-272.
    5. Fahimnia, Behnam & Sarkis, Joseph & Eshragh, Ali, 2015. "A tradeoff model for green supply chain planning:A leanness-versus-greenness analysis," Omega, Elsevier, vol. 54(C), pages 173-190.
    6. Tanksale, Ajinkya N. & Das, Debabrata & Verma, Priyanka & Tiwari, Manoj Kumar, 2021. "Unpacking the role of primary packaging material in designing green supply chains: An integrated approach," International Journal of Production Economics, Elsevier, vol. 236(C).
    7. Meherishi, Lavanya & Narayana, Sushmita A. & Ranjani, K.S., 2021. "Integrated product and packaging decisions with secondary packaging returns and protective packaging management," European Journal of Operational Research, Elsevier, vol. 292(3), pages 930-952.
    8. Lo, Sh-Tyan & Wee, Hui-Ming & Huang, Wen-Chang, 2007. "An integrated production-inventory model with imperfect production processes and Weibull distribution deterioration under inflation," International Journal of Production Economics, Elsevier, vol. 106(1), pages 248-260, March.
    9. Rui Zhao & Yiyun Liu & Zhenyan Zhang & Sidai Guo & Ming-Lang Tseng & Kuo-Jui Wu, 2018. "Enhancing Eco-Efficiency of Agro-Products’ Closed-Loop Supply Chain under the Belt and Road Initiatives: A System Dynamics Approach," Sustainability, MDPI, vol. 10(3), pages 1-15, March.
    10. Zhang, Qinhong & Segerstedt, Anders & Tsao, Yu-Chung & Liu, Biyu, 2015. "Returnable packaging management in automotive parts logistics: Dedicated mode and shared mode," International Journal of Production Economics, Elsevier, vol. 168(C), pages 234-244.
    11. Julio C. Londoño & Rafael D. Tordecilla & Leandro do C. Martins & Angel A. Juan, 2021. "A biased-randomized iterated local search for the vehicle routing problem with optional backhauls," TOP: An Official Journal of the Spanish Society of Statistics and Operations Research, Springer;Sociedad de Estadística e Investigación Operativa, vol. 29(2), pages 387-416, July.
    12. Yang, Ya & Chi, Huihui & Tang, Ou & Zhou, Wei & Fan, Tijun, 2019. "Cross perishable effect on optimal inventory preservation control," European Journal of Operational Research, Elsevier, vol. 276(3), pages 998-1012.
    13. Liao, Haolan & Zhang, Qingyu & Shen, Neng & Nie, Yongyou & Li, Lu, 2021. "Coordination between forward and reverse production streams for maximum profitability," Omega, Elsevier, vol. 104(C).
    14. R. Sundara rajan & R. Uthayakumar, 2017. "Comprehensive solution procedure for optimizing replenishment policies of instantaneous deteriorating items with stock-dependent demand under partial trade credit linked to order quantity," International Journal of System Assurance Engineering and Management, Springer;The Society for Reliability, Engineering Quality and Operations Management (SREQOM),India, and Division of Operation and Maintenance, Lulea University of Technology, Sweden, vol. 8(2), pages 1343-1373, November.
    15. Abdul Salam Khan & Catalin Iulian Pruncu & Razaullah Khan & Khawar Naeem & Abdul Ghaffar & Pakeeza Ashraf & Shah Room, 2020. "A Trade-off Analysis of Economic and Environmental Aspects of a Disruption Based Closed-Loop Supply Chain Network," Sustainability, MDPI, vol. 12(17), pages 1-28, August.
    16. Goyal, S. K. & Giri, B. C., 2001. "Recent trends in modeling of deteriorating inventory," European Journal of Operational Research, Elsevier, vol. 134(1), pages 1-16, October.
    17. Zeinab Sazvar & Mohammad Reza Akbari Jokar & Armand Baboli, 2014. "A new order splitting model with stochastic lead times for deterioration items," International Journal of Systems Science, Taylor & Francis Journals, vol. 45(9), pages 1936-1954, September.
    18. Goyal, S. K. & Giri, B. C., 2003. "The production-inventory problem of a product with time varying demand, production and deterioration rates," European Journal of Operational Research, Elsevier, vol. 147(3), pages 549-557, June.
    19. Atıcı, Ferhan M. & Lebedinsky, Alex & Uysal, Fahriye, 2013. "Inventory model of deteriorating items on non-periodic discrete-time domains," European Journal of Operational Research, Elsevier, vol. 230(2), pages 284-289.
    20. Janssen, Larissa & Claus, Thorsten & Sauer, Jürgen, 2016. "Literature review of deteriorating inventory models by key topics from 2012 to 2015," International Journal of Production Economics, Elsevier, vol. 182(C), pages 86-112.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:proeco:v:189:y:2017:i:c:p:1-13. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/ijpe .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.