IDEAS home Printed from https://ideas.repec.org/a/inm/ormnsc/v34y1988i8p991-1004.html
   My bibliography  Save this article

Joint Determination of Optimal Inventory and Quality Control Policy

Author

Listed:
  • Michael H. Peters

    (Quantitative Business Analysis Department, College of Business Administration, Louisiana State University, Baton Rouge, Louisiana 70803)

  • Helmut Schneider

    (Quantitative Business Analysis Department, College of Business Administration, Louisiana State University, Baton Rouge, Louisiana 70803)

  • Kwei Tang

    (Quantitative Business Analysis Department, College of Business Administration, Louisiana State University, Baton Rouge, Louisiana 70803)

Abstract

Typically the operating policy for the inventory control system for a commodity is developed independent of the operating policy for the quality control system for that commodity and vice versa. In many circumstances, these systems are dependent on one another. A cost model that combines a fixed order quantity inventory control system with a Bayesian quality control system for a lot-by-lot attribute acceptance sampling plan is presented along with an algorithm to obtain the operating parameters for the combined systems. Behavior of the combined systems is investigated, and the costs and operating policy determined using this model are compared with the costs and operating policy determined when there is no integration of the two systems and when there is partial integration of the two systems. There are significant cost savings obtained by using the operating policy developed under the combined systems over the operating policy derived from the separate systems.

Suggested Citation

  • Michael H. Peters & Helmut Schneider & Kwei Tang, 1988. "Joint Determination of Optimal Inventory and Quality Control Policy," Management Science, INFORMS, vol. 34(8), pages 991-1004, August.
    • Handle: RePEc:inm:ormnsc:v:34:y:1988:i:8:p:991-1004
    DOI: 10.1287/mnsc.34.8.991
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1287/mnsc.34.8.991
    Download Restriction: no
    File URL: https://libkey.io/10.1287/mnsc.34.8.991?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
    ---><---

    Citations

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


    Cited by:

    1. Ben-Daya, M. & Noman, S.M., 2008. "Integrated inventory and inspection policies for stochastic demand," European Journal of Operational Research, Elsevier, vol. 185(1), pages 159-169, February.
    2. Yimin Wang, 2013. "Specification vagueness and supply quality risk," Naval Research Logistics (NRL), John Wiley & Sons, vol. 60(3), pages 222-236, April.
    3. Wright, CM & Mehrez, A, 1998. "An Overview of Representative Research of the Relationships Between Quality and Inventory," Omega, Elsevier, vol. 26(1), pages 29-47, February.
    4. A. Gürhan Kök & Kevin H. Shang, 2007. "Inspection and Replenishment Policies for Systems with Inventory Record Inaccuracy," Manufacturing & Service Operations Management, INFORMS, vol. 9(2), pages 185-205, February.
    5. Tang, Kwei & Gong, Linguo & Chang, Dong-Shang, 2003. "Optimal process control policies under a time-varying cost structure," European Journal of Operational Research, Elsevier, vol. 149(1), pages 197-210, August.
    6. Jinfa Chen & David D. Yao & Shaohui Zheng, 2001. "Optimal Replenishment and Rework with Multiple Unreliable Supply Sources," Operations Research, INFORMS, vol. 49(3), pages 430-443, June.
    7. Bouslah, Bassem & Gharbi, Ali & Pellerin, Robert, 2013. "Joint optimal lot sizing and production control policy in an unreliable and imperfect manufacturing system," International Journal of Production Economics, Elsevier, vol. 144(1), pages 143-156.

    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:inm:ormnsc:v:34:y:1988:i:8:p:991-1004. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Chris Asher (email available below). General contact details of provider: https://edirc.repec.org/data/inforea.html .

    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.