IDEAS home Printed from https://ideas.repec.org/a/spr/annopr/v315y2022i1d10.1007_s10479-022-04646-y.html
   My bibliography  Save this article

An inventory management for global supply chain through reworking of defective items having positive inventory level under multi-trade-credit-period

Author

Listed:
  • Waqas Ahmed

    (National University of Sciences and Technology)

  • Muhammad Jalees

    (Bahria University)

  • Muhammad Omair

    (University of Engineering & Technology)

  • Zainab Mukhtar

    (University of the Punjab)

  • Muhammad Imran

    (National University of Sciences and Technology)

Abstract

Supply chain management is facing serious challenges in the form of imperfections, which cause quality and environmental concerns. The supplier’s manufacturing system may not produce all perfect items and some chances of receiving a lot may include a proportion of imperfect items. It is a time-consuming, negative impact on the environment, and costly activity if the buyer instantly exchanges these defective items with the supplier. These defective products are still economically valuable and can be reworkable. It is more feasible to repair or rework the products at a local repair/service store for saving cost, environment, and time. The repaired products are expected to come back to the buyer when the inventory level is positive. In addition, global purchasing brings superfluous and continuing paybacks, where there are various scenarios when the sellers and buyers are working at a long distance and they are dealing in various businesses by importing and exporting products. Therefore, the supplier also offers a sustainable method of payment to the buyer known as a multi-trade credit period. An inventory model is developed to reduce the on-hand stock, save the environment, and benefit for interim financing. The objective is to optimize the profit of the supply chain by incorporating product reparation policy with the integration of multi-trade-credit policy and shortages simultaneously. A non-derivative approach is utilized to optimize the supply chain mathematical model by deciding the ordering lot size, cycle time, and proportion of backorder demand. The model also used numerical data of the firm to support decision-makers for transforming the proposed supply chain model into real practices. The proposed model has been checked for the sensitivity of various significant supply chain management parameters.

Suggested Citation

  • Waqas Ahmed & Muhammad Jalees & Muhammad Omair & Zainab Mukhtar & Muhammad Imran, 2022. "An inventory management for global supply chain through reworking of defective items having positive inventory level under multi-trade-credit-period," Annals of Operations Research, Springer, vol. 315(1), pages 1-28, August.
    • Handle: RePEc:spr:annopr:v:315:y:2022:i:1:d:10.1007_s10479-022-04646-y
    DOI: 10.1007/s10479-022-04646-y
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s10479-022-04646-y
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s10479-022-04646-y?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. Sana, Shib Sankar & Chaudhuri, K.S., 2008. "A deterministic EOQ model with delays in payments and price-discount offers," European Journal of Operational Research, Elsevier, vol. 184(2), pages 509-533, January.
    2. Papachristos, S. & Konstantaras, I., 2006. "Economic ordering quantity models for items with imperfect quality," International Journal of Production Economics, Elsevier, vol. 100(1), pages 148-154, March.
    3. Muhammad Omair & Biswajit Sarkar & Leopoldo Eduardo Cárdenas-Barrón, 2017. "Minimum Quantity Lubrication and Carbon Footprint: A Step towards Sustainability," Sustainability, MDPI, vol. 9(5), pages 1-18, April.
    4. Steven Tadelis & Oliver E.Williamson, 2012. "Transaction Cost Economics [The Handbook of Organizational Economics]," Introductory Chapters,, Princeton University Press.
    5. Chang Wook Kang & Misbah Ullah & Mitali Sarkar & Muhammad Omair & Biswajit Sarkar, 2019. "A Single-Stage Manufacturing Model with Imperfect Items, Inspections, Rework, and Planned Backorders," Mathematics, MDPI, vol. 7(5), pages 1-18, May.
    6. Singa Wang Chiu, 2007. "Optimal replenishment policy for imperfect quality EMQ model with rework and backlogging," Applied Stochastic Models in Business and Industry, John Wiley & Sons, vol. 23(2), pages 165-178, March.
    7. Bonney, Maurice & Jaber, Mohamad Y., 2011. "Environmentally responsible inventory models: Non-classical models for a non-classical era," International Journal of Production Economics, Elsevier, vol. 133(1), pages 43-53, September.
    8. Liao, Jui-Jung & Huang, Kuo-Nan & Chung, Kun-Jen, 2012. "Lot-sizing decisions for deteriorating items with two warehouses under an order-size-dependent trade credit," International Journal of Production Economics, Elsevier, vol. 137(1), pages 102-115.
    9. Shib Sana, 2015. "An EOQ model for stochastic demand for limited capacity of own warehouse," Annals of Operations Research, Springer, vol. 233(1), pages 383-399, October.
    10. Brojeswar Pal & Shib Sankar Sana & Kripasindhu Chaudhuri, 2014. "Three stage trade credit policy in a three-layer supply chain–a production-inventory model," International Journal of Systems Science, Taylor & Francis Journals, vol. 45(9), pages 1844-1868, September.
    11. Eroglu, Abdullah & Ozdemir, Gultekin, 2007. "An economic order quantity model with defective items and shortages," International Journal of Production Economics, Elsevier, vol. 106(2), pages 544-549, April.
    12. Jaber, Mohamad Y. & Zanoni, Simone & Zavanella, Lucio E., 2014. "Economic order quantity models for imperfect items with buy and repair options," International Journal of Production Economics, Elsevier, vol. 155(C), pages 126-131.
    13. Mohammed Alkahtani & Qazi Salman Khalid & Muhammad Jalees & Muhammad Omair & Ghulam Hussain & Catalin Iulian Pruncu, 2021. "E-Agricultural Supply Chain Management Coupled with Blockchain Effect and Cooperative Strategies," Sustainability, MDPI, vol. 13(2), pages 1-29, January.
    14. Salameh, M. K. & Jaber, M. Y., 2000. "Economic production quantity model for items with imperfect quality," International Journal of Production Economics, Elsevier, vol. 64(1-3), pages 59-64, March.
    15. Jinn-Tsair Teng & Chun-Tao Chang & Maw-Sheng Chern, 2012. "Vendor–buyer inventory models with trade credit financing under both non-cooperative and integrated environments," International Journal of Systems Science, Taylor & Francis Journals, vol. 43(11), pages 2050-2061.
    16. Taleizadeh, Ata Allah & Khanbaglo, Mahboobeh Perak Sari & Cárdenas-Barrón, Leopoldo Eduardo, 2016. "An EOQ inventory model with partial backordering and reparation of imperfect products," International Journal of Production Economics, Elsevier, vol. 182(C), pages 418-434.
    17. Evan L. Porteus, 1986. "Optimal Lot Sizing, Process Quality Improvement and Setup Cost Reduction," Operations Research, INFORMS, vol. 34(1), pages 137-144, February.
    18. Brojeswar Pal & Shib Sankar Sana & Kripasindhu Chaudhuri, 2016. "Two-echelon competitive integrated supply chain model with price and credit period dependent demand," International Journal of Systems Science, Taylor & Francis Journals, vol. 47(5), pages 995-1007, April.
    19. Muhammad Omair & Misbah Ullah & Baishakhi Ganguly & Sahar Noor & Shahid Maqsood & Biswajit Sarkar, 2019. "The Quantitative Analysis of Workers’ Stress Due to Working Environment in the Production System of the Automobile Part Manufacturing Industry," Mathematics, MDPI, vol. 7(7), pages 1-18, July.
    20. Tang, Christopher S. & Zhou, Sean, 2012. "Research advances in environmentally and socially sustainable operations," European Journal of Operational Research, Elsevier, vol. 223(3), pages 585-594.
    21. Huang, Zhimin & Li, Susan X., 2001. "Co-op advertising models in manufacturer-retailer supply chains: A game theory approach," European Journal of Operational Research, Elsevier, vol. 135(3), pages 527-544, December.
    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. Muhammad Omair & Mohammed Alkahtani & Kashif Ayaz & Ghulam Hussain & Johannes Buhl, 2022. "Supply Chain Modelling of the Automobile Multi-Stage Production Considering Circular Economy by Waste Management Using Recycling and Reworking Operations," Sustainability, MDPI, vol. 14(22), pages 1-26, November.

    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. Naoufel Cheikhrouhou & Biswajit Sarkar & Baishakhi Ganguly & Asif Iqbal Malik & Rafael Batista & Young Hae Lee, 2018. "Optimization of sample size and order size in an inventory model with quality inspection and return of defective items," Annals of Operations Research, Springer, vol. 271(2), pages 445-467, December.
    2. Taleizadeh, Ata Allah & Khanbaglo, Mahboobeh Perak Sari & Cárdenas-Barrón, Leopoldo Eduardo, 2016. "An EOQ inventory model with partial backordering and reparation of imperfect products," International Journal of Production Economics, Elsevier, vol. 182(C), pages 418-434.
    3. Hsu, Jia-Tzer & Hsu, Lie-Fern, 2013. "An EOQ model with imperfect quality items, inspection errors, shortage backordering, and sales returns," International Journal of Production Economics, Elsevier, vol. 143(1), pages 162-170.
    4. Sher, Mikhail M. & Kim, Seung-Lae & Banerjee, Avijit & Paz, Michael T., 2018. "A supply chain coordination mechanism for common items subject to failure in the electronics, defense, and medical industries," International Journal of Production Economics, Elsevier, vol. 203(C), pages 164-173.
    5. Tien-Yu Lin & Kuo-Lung Hou, 2015. "An imperfect quality economic order quantity with advanced receiving," TOP: An Official Journal of the Spanish Society of Statistics and Operations Research, Springer;Sociedad de Estadística e Investigación Operativa, vol. 23(2), pages 535-551, July.
    6. Harun Öztürk, 2019. "Modeling an inventory problem with random supply, inspection and machine breakdown," OPSEARCH, Springer;Operational Research Society of India, vol. 56(2), pages 497-527, June.
    7. Ivan Darma Wangsa & Hui Ming Wee & Shih-Hsien Tseng, 2019. "A coordinated vendor–buyer system considering loss and damage claims, insurance cost and stochastic lead time," 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. 10(3), pages 384-398, June.
    8. Liang-Yuh Ouyang & Cheng-Ju Chuang & Chia-Huei Ho & Chien-Wei Wu, 2014. "An integrated inventory model with quality improvement and two-part credit policy," TOP: An Official Journal of the Spanish Society of Statistics and Operations Research, Springer;Sociedad de Estadística e Investigación Operativa, vol. 22(3), pages 1042-1061, October.
    9. Kevin Hsu, Wen-Kai & Yu, Hong-Fwu, 2009. "EOQ model for imperfective items under a one-time-only discount," Omega, Elsevier, vol. 37(5), pages 1018-1026, October.
    10. Lee, Hsu-Hua, 2008. "The investment model in preventive maintenance in multi-level production systems," International Journal of Production Economics, Elsevier, vol. 112(2), pages 816-828, April.
    11. Yassine, Ali & Maddah, Bacel & Salameh, Moueen, 2012. "Disaggregation and consolidation of imperfect quality shipments in an extended EPQ model," International Journal of Production Economics, Elsevier, vol. 135(1), pages 345-352.
    12. Hauck, Zsuzsanna & Vörös, József, 2015. "Lot sizing in case of defective items with investments to increase the speed of quality control," Omega, Elsevier, vol. 52(C), pages 180-189.
    13. Khan, M. & Jaber, M.Y. & Wahab, M.I.M., 2010. "Economic order quantity model for items with imperfect quality with learning in inspection," International Journal of Production Economics, Elsevier, vol. 124(1), pages 87-96, March.
    14. Biswajit Sarkar & Waqas Ahmed & Seok-Beom Choi & Muhammad Tayyab, 2018. "Sustainable Inventory Management for Environmental Impact through Partial Backordering and Multi-Trade-Credit-Period," Sustainability, MDPI, vol. 10(12), pages 1-28, December.
    15. Khan, M. & Jaber, M.Y. & Guiffrida, A.L. & Zolfaghari, S., 2011. "A review of the extensions of a modified EOQ model for imperfect quality items," International Journal of Production Economics, Elsevier, vol. 132(1), pages 1-12, July.
    16. Sudipta Sinha & Nikunja Mohan Modak & Shib Sankar Sana, 2020. "An entropic order quantity inventory model for quality assessment considering price sensitive demand," OPSEARCH, Springer;Operational Research Society of India, vol. 57(1), pages 88-103, March.
    17. Chang, Hung-Chi & Ho, Chia-Huei, 2010. "Exact closed-form solutions for "optimal inventory model for items with imperfect quality and shortage backordering"," Omega, Elsevier, vol. 38(3-4), pages 233-237, June.
    18. Lie-Fern Hsu & Jia-Tzer Hsu, 2016. "Economic production quantity (EPQ) models under an imperfect production process with shortages backordered," International Journal of Systems Science, Taylor & Francis Journals, vol. 47(4), pages 852-867, March.
    19. Yoo, Seung Ho & Kim, DaeSoo & Park, Myung-Sub, 2009. "Economic production quantity model with imperfect-quality items, two-way imperfect inspection and sales return," International Journal of Production Economics, Elsevier, vol. 121(1), pages 255-265, September.
    20. Dipak Barman & Gour Chandra Mahata, 2022. "Two-echelon production inventory model with imperfect quality items with ordering cost reduction depending on controllable lead time," 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. 13(5), pages 2656-2671, October.

    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:spr:annopr:v:315:y:2022:i:1:d:10.1007_s10479-022-04646-y. 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    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.