IDEAS home Printed from https://ideas.repec.org/a/spr/ijsaem/v12y2021i1d10.1007_s13198-020-01038-y.html
   My bibliography  Save this article

Ordering policies for deteriorating imperfect quality items with trade-credit financing under learning effect

Author

Listed:
  • Mahesh Kumar Jayaswal

    (Banasthali Vidyapith)

  • Mandeep Mittal

    (Amity University Noid)

  • Isha Sangal

    (Banasthali Vidyapith)

Abstract

In obedience with the economic order quantity model, the ordered lot has 100% good quality items, but this is only suppositional. On examination, it is learnt that some of the produced lots have defective items because of process retrogression and other such factors. Thus, in this situation, the inspection of lots is essential for all organizations when the items are deteriorating in nature. Owing to this fact, an inventory model is proposed for deteriorating items with in-process inspection with learning effect under permissible delay in the payments. The aim of this paper is to study the impact of learning on the ordered quantity under the influence of trade-credit financing. Finally, the expected total profit function is maximized with respect to order quantity under credit financing. This paper, which is an extension of Patro et al. (Int J Manag Decis Mak 17(2): 171–198, 2018) commendable work, makes significant use of permissible delay in payment and proposed an inventory model for deteriorating imperfect quality items with learning effect. A numerical example given ahead shows the verification of results. Results suggest that impact of trade-credit policy is positive on the proposed inventory model. The effect of key parameters on the model is studied by sensitivity analysis to deduce managerial insights.

Suggested Citation

  • Mahesh Kumar Jayaswal & Mandeep Mittal & Isha Sangal, 2021. "Ordering policies for deteriorating imperfect quality items with trade-credit financing under learning effect," 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(1), pages 112-125, February.
    • Handle: RePEc:spr:ijsaem:v:12:y:2021:i:1:d:10.1007_s13198-020-01038-y
    DOI: 10.1007/s13198-020-01038-y
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s13198-020-01038-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/s13198-020-01038-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. Abad, P. L. & Jaggi, C. K., 2003. "A joint approach for setting unit price and the length of the credit period for a seller when end demand is price sensitive," International Journal of Production Economics, Elsevier, vol. 83(2), pages 115-122, February.
    2. Jamal, A. M. M. & Sarker, Bhaba R. & Wang, Shaojun, 2000. "Optimal payment time for a retailer under permitted delay of payment by the wholesaler," International Journal of Production Economics, Elsevier, vol. 66(1), pages 59-66, June.
    3. Jaber, M.Y. & Goyal, S.K. & Imran, M., 2008. "Economic production quantity model for items with imperfect quality subject to learning effects," International Journal of Production Economics, Elsevier, vol. 115(1), pages 143-150, September.
    4. 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.
    5. Chandra K. Jaggi & Sunil Tiwari & Satish K. Goel, 2017. "Credit financing in economic ordering policies for non-instantaneous deteriorating items with price dependent demand and two storage facilities," Annals of Operations Research, Springer, vol. 248(1), pages 253-280, January.
    6. Seong Whan Shinn & Hwang, Hark & Sung, Soo Park, 1996. "Joint price and lot size determination under conditions of permissible delay in payments and quantity discounts for freight cost," European Journal of Operational Research, Elsevier, vol. 91(3), pages 528-542, June.
    7. Teng, Jinn-Tsair & Lou, Kuo-Ren & Wang, Lu, 2014. "Optimal trade credit and lot size policies in economic production quantity models with learning curve production costs," International Journal of Production Economics, Elsevier, vol. 155(C), pages 318-323.
    8. 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.
    9. Jaber, Mohamad Y. & Guiffrida, Alfred L., 2004. "Learning curves for processes generating defects requiring reworks," European Journal of Operational Research, Elsevier, vol. 159(3), pages 663-672, December.
    10. Jaber, Mohamad Y. & Khan, Mehmood, 2010. "Managing yield by lot splitting in a serial production line with learning, rework and scrap," International Journal of Production Economics, Elsevier, vol. 124(1), pages 32-39, March.
    11. Rojalin Patro & Milu Acharya & Mitali Madhusmita Nayak & Srikanta Patnaik, 2018. "A fuzzy EOQ model for deteriorating items with imperfect quality using proportionate discount under learning effects," International Journal of Management and Decision Making, Inderscience Enterprises Ltd, vol. 17(2), pages 171-198.
    12. Biswajit Sarkar, 2016. "Supply Chain Coordination with Variable Backorder, Inspections, and Discount Policy for Fixed Lifetime Products," Mathematical Problems in Engineering, Hindawi, vol. 2016, pages 1-14, February.
    13. 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.
    14. Dongmin Shin & Mandeep Mittal & Biswajit Sarkar, 2018. "Effects of human errors and trade-credit financing in two-echelon supply chain models," European Journal of Industrial Engineering, Inderscience Enterprises Ltd, vol. 12(4), pages 465-503.
    15. Linda Argote & Sara L. Beckman & Dennis Epple, 1990. "The Persistence and Transfer of Learning in Industrial Settings," Management Science, INFORMS, vol. 36(2), pages 140-154, February.
    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. Beatrice Marchi & Lucio E. Zavanella & Simone Zanoni, 2023. "Supply chain finance for ameliorating and deteriorating products: a systematic literature review," Journal of Business Economics, Springer, vol. 93(3), pages 359-388, April.
    2. Soosan Moradi & Mohammad Reza Gholamian & Arash Sepehri, 2023. "An inventory model for imperfect quality items considering learning effects and partial trade credit policy," OPSEARCH, Springer;Operational Research Society of India, vol. 60(1), pages 276-325, March.
    3. Mandeep Mittal & Mahesh Kumar Jayaswal & Vijay Kumar, 2022. "Effect of learning on the optimal ordering policy of inventory model for deteriorating items with shortages and trade-credit financing," 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(2), pages 914-924, June.

    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. Osama Abdulaziz Alamri, 2023. "A Supply Chain Model with Carbon Emissions and Preservation Technology for Deteriorating Items under Trade Credit Policy and Learning in Fuzzy," Mathematics, MDPI, vol. 11(13), pages 1-58, June.
    2. Mahesh Kumar Jayaswal & Isha Sangal & Mandeep Mittal, 2022. "Impact of Credit Financing on the Ordering Policy for Imperfect Quality Items With Learning and Shortages," International Journal of Business Analytics (IJBAN), IGI Global, vol. 9(1), pages 1-18, January.
    3. Javad Asadkhani & Hadi Mokhtari & Saman Tahmasebpoor, 2022. "Optimal lot-sizing under learning effect in inspection errors with different types of imperfect quality items," Operational Research, Springer, vol. 22(3), pages 2631-2665, July.
    4. 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.
    5. Chandra K. Jaggi & Mamta Gupta & Amrina Kausar & Sunil Tiwari, 2019. "Inventory and credit decisions for deteriorating items with displayed stock dependent demand in two-echelon supply chain using Stackelberg and Nash equilibrium solution," Annals of Operations Research, Springer, vol. 274(1), pages 309-329, March.
    6. 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.
    7. Mahesh Kumar Jayaswal & Mandeep Mittal, 2022. "Impact of Inflation and Credit Financing Policy on the Supply Chain With Learning," International Journal of Information Systems and Supply Chain Management (IJISSCM), IGI Global, vol. 15(1), pages 1-25, January.
    8. Basim S. O. Alsaedi, 2024. "A Sustainable Supply Chain Model with a Setup Cost Reduction Policy for Imperfect Items under Learning in a Cloudy Fuzzy Environment," Mathematics, MDPI, vol. 12(10), pages 1-33, May.
    9. Leopoldo Eduardo Cárdenas-Barrón & María José Lea Plaza-Makowsky & María Alejandra Sevilla-Roca & José María Núñez-Baumert & Buddhadev Mandal, 2021. "An Inventory Model for Imperfect Quality Products with Rework, Distinct Holding Costs, and Nonlinear Demand Dependent on Price," Mathematics, MDPI, vol. 9(12), pages 1-20, June.
    10. Nadeau, Marie-Claude & Kar, Ashish & Roth, Richard & Kirchain, Randolph, 2010. "A dynamic process-based cost modeling approach to understand learning effects in manufacturing," International Journal of Production Economics, Elsevier, vol. 128(1), pages 223-234, November.
    11. Nita Shah & Monika Naik, 2019. "Coordinated production, ordering, shipment and pricing model for supplier-retailer inventory system under trade credit," Operations Research and Decisions, Wroclaw University of Science and Technology, Faculty of Management, vol. 29(2), pages 55-76.
    12. Sana, Shib Sankar, 2010. "An economic production lot size model in an imperfect production system," European Journal of Operational Research, Elsevier, vol. 201(1), pages 158-170, February.
    13. Skouri, K. & Konstantaras, I. & Lagodimos, A.G. & Papachristos, S., 2014. "An EOQ model with backorders and rejection of defective supply batches," International Journal of Production Economics, Elsevier, vol. 155(C), pages 148-154.
    14. 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.
    15. Muhammad Babar Ramzan & Shehreyar Mohsin Qureshi & Sonia Irshad Mari & Muhammad Saad Memon & Mandeep Mittal & Muhammad Imran & Muhammad Waqas Iqbal, 2019. "Effect of Time-Varying Factors on Optimal Combination of Quality Inspectors for Offline Inspection Station," Mathematics, MDPI, vol. 7(1), pages 1-18, January.
    16. Mandeep Mittal & Mahesh Kumar Jayaswal & Vijay Kumar, 2022. "Effect of learning on the optimal ordering policy of inventory model for deteriorating items with shortages and trade-credit financing," 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(2), pages 914-924, June.
    17. Soheyl Khalilpourazari & Seyed Hamid Reza Pasandideh, 2020. "Multi-objective optimization of multi-item EOQ model with partial backordering and defective batches and stochastic constraints using MOWCA and MOGWO," Operational Research, Springer, vol. 20(3), pages 1729-1761, September.
    18. Anzanello, Michel J. & Fogliatto, Flavio S. & Santos, Luana, 2014. "Learning dependent job scheduling in mass customized scenarios considering ergonomic factors," International Journal of Production Economics, Elsevier, vol. 154(C), pages 136-145.
    19. 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.
    20. Li, Ruihai & Skouri, Konstantina & Teng, Jinn-Tsair & Yang, Wen-Goang, 2018. "Seller's optimal replenishment policy and payment term among advance, cash, and credit payments," International Journal of Production Economics, Elsevier, vol. 197(C), pages 35-42.

    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:ijsaem:v:12:y:2021:i:1:d:10.1007_s13198-020-01038-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.