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A JIT integrated inventory model for a buyer and a vendor considering the impact of quality improvement

Author

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  • Mallika Parveen
  • T.V.V.L.N. Rao

Abstract

This paper investigates the effect of quality improvement using the integrated vendor–buyer inventory model of Banerjee and Kim (1995). The quality improvement investment (Yang and Pan, 2004) is explored under the conditions of buyer and vendor quality improvement efforts (Zhu et al., 2007). The integrated joint optimal policy for buyer–vendor yields minimum total cost when compared with independent buyer–vendor optimal policies. Buyer integration with high-quality vendor is preferred owing to lower total costs. Constraints on the quality improvement yield a higher Total Relevant Cost (TRC) for buyer and vendor coordination.

Suggested Citation

  • Mallika Parveen & T.V.V.L.N. Rao, 2009. "A JIT integrated inventory model for a buyer and a vendor considering the impact of quality improvement," International Journal of Manufacturing Technology and Management, Inderscience Enterprises Ltd, vol. 18(2), pages 210-227.
    • Handle: RePEc:ids:ijmtma:v:18:y:2009:i:2:p:210-227
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