IDEAS home Printed from https://ideas.repec.org/a/spr/operea/v18y2018i2d10.1007_s12351-016-0267-4.html
   My bibliography  Save this article

EPQ model for returned/reworked inventories during imperfect production process under price-sensitive stock-dependent demand

Author

Listed:
  • Nita H. Shah

    (Gujarat University)

  • Dushyantkumar G. Patel

    (Government Polytechnic for Girls)

  • Digeshkumar B. Shah

    (L. D. College of Engineering)

Abstract

During production process, we may encounter with some defective items in spite of all preventive measures. The defective items are either rejected immediately at the time of production or reworked and sold as good ones or customers are given enough refund to maintain the goodwill of the company. Here, no. of defective items is assumed to be some fraction of production. Moreover higher price of a product trims down the demand and vice versa. Also in the market, it is seen that large stacks of consumer goods display lead the customers to buy more. The article considers this realistic situation and involves price-sensitive stock dependent demand. As production advances, we have defective items as a part of outcome. So production rate is one of the key features for the present model while calculating the profit. Cycle time and retail price are the very obvious factors affecting the profit. Hence, maximum total profit is achieved with respect to production rate, cycle time and retail price. When there are no defective items in production process, the optimal results are obtained as well.

Suggested Citation

  • Nita H. Shah & Dushyantkumar G. Patel & Digeshkumar B. Shah, 2018. "EPQ model for returned/reworked inventories during imperfect production process under price-sensitive stock-dependent demand," Operational Research, Springer, vol. 18(2), pages 343-359, July.
    • Handle: RePEc:spr:operea:v:18:y:2018:i:2:d:10.1007_s12351-016-0267-4
    DOI: 10.1007/s12351-016-0267-4
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s12351-016-0267-4
    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/s12351-016-0267-4?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. 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.
    2. Taleizadeh, Ata Allah & Cárdenas-Barrón, Leopoldo Eduardo & Mohammadi, Babak, 2014. "A deterministic multi product single machine EPQ model with backordering, scraped products, rework and interruption in manufacturing process," International Journal of Production Economics, Elsevier, vol. 150(C), pages 9-27.
    3. 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.
    4. Flapper, Simme Douwe P. & Teunter, Ruud H., 2004. "Logistic planning of rework with deteriorating work-in-process," International Journal of Production Economics, Elsevier, vol. 88(1), pages 51-59, March.
    5. Gerardo Treviño-Garza & Krystel K. Castillo-Villar & Leopoldo Eduardo Cárdenas-Barrón, 2015. "Joint determination of the lot size and number of shipments for a family of integrated vendor–buyer systems considering defective products," International Journal of Systems Science, Taylor & Francis Journals, vol. 46(9), pages 1705-1716, July.
    6. David A. Schrady, 1967. "A deterministic inventory model for reparable items," Naval Research Logistics Quarterly, John Wiley & Sons, vol. 14(3), pages 391-398.
    7. Ruud H. Teunter, 2001. "Economic ordering quantities for recoverable item inventory systems," Naval Research Logistics (NRL), John Wiley & Sons, vol. 48(6), pages 484-495, September.
    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. Dawood Yahyavi & Ata Allah Taleizadeh & Park Thaichon, 2024. "National brands versus store brands: retailer fight against national brands to improve store brands via a dynamic discount pricing strategy," Operational Research, Springer, vol. 24(4), pages 1-36, December.
    2. Mostafa Parsa & Ali Shahandeh Nookabadi & Zümbül Atan & Yaser Malekian, 2022. "An optimal inventory policy for a multi-echelon closed-loop supply chain of postconsumer recycled content products," Operational Research, Springer, vol. 22(3), pages 1887-1938, July.
    3. Subhendu Ruidas & Mijanur Rahaman Seikh & Prasun Kumar Nayak, 2022. "A production-repairing inventory model considering demand and the proportion of defective items as rough intervals," Operational Research, Springer, vol. 22(3), pages 2803-2829, July.
    4. R. Udayakumar & S. Priyan & Mandeep Mittal & Anuwat Jirawattanapanit & Grienggrai Rajchakit & Pramet Kaewmesri, 2022. "A Sustainable Production Scheduling with Backorders under Different Forms of Rework Process and Green Investment," Sustainability, MDPI, vol. 14(24), pages 1-38, December.
    5. Al-Salamah, Muhammad, 2019. "Economic production quantity in an imperfect manufacturing process with synchronous and asynchronous flexible rework rates," Operations Research Perspectives, Elsevier, vol. 6(C).

    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. Felix T.S. Chan & Nan Li & S.H. Chung & Mozafar Saadat, 2017. "Management of sustainable manufacturing systems-a review on mathematical problems," International Journal of Production Research, Taylor & Francis Journals, vol. 55(4), pages 1210-1225, February.
    2. Harun Öztürk, 2021. "Optimal production run time for an imperfect production inventory system with rework, random breakdowns and inspection costs," Operational Research, Springer, vol. 21(1), pages 167-204, March.
    3. 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.
    4. Chayanika Rout & Ravi Shankar Kumar & Debjani Chakraborty & Adrijit Goswami, 2019. "An EPQ model for deteriorating items with imperfect production, inspection errors, rework and shortages : a type-2 fuzzy approach," OPSEARCH, Springer;Operational Research Society of India, vol. 56(3), pages 657-688, September.
    5. Al-Salamah, Muhammad, 2019. "Economic production quantity in an imperfect manufacturing process with synchronous and asynchronous flexible rework rates," Operations Research Perspectives, Elsevier, vol. 6(C).
    6. Taleizadeh, Ata Allah & Moshtagh, Mohammad Sadegh, 2019. "A consignment stock scheme for closed loop supply chain with imperfect manufacturing processes, lost sales, and quality dependent return: Multi Levels Structure," International Journal of Production Economics, Elsevier, vol. 217(C), pages 298-316.
    7. Hallak, Bassam K. & Nasr, Walid W. & Jaber, Mohamad Y., 2021. "Re-ordering policies for inventory systems with recyclable items and stochastic demand – Outsourcing vs. in-house recycling," Omega, Elsevier, vol. 105(C).
    8. Chiu, Singa Wang & Wu, Cheng-Sian & Tseng, Chao-Tang, 2019. "Incorporating an expedited rate, rework, and a multi-shipment policy into a multi-item stock refilling system," Operations Research Perspectives, Elsevier, vol. 6(C).
    9. Lucas Dias Condeixa & Pierry Silva & Diego Moah & Brenda Farias & Adriana Leiras, 2022. "Evaluating cost impacts on reverse logistics using an Economic Order Quantity (EOQ) model with environmental and social considerations," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 30(3), pages 921-940, September.
    10. Bimal Kumar Mawandiya & J. K. Jha & Jitesh J. Thakkar, 2020. "Optimal production-inventory policy for closed-loop supply chain with remanufacturing under random demand and return," Operational Research, Springer, vol. 20(3), pages 1623-1664, September.
    11. Adel A. Alamri, 2023. "A Sustainable Closed-Loop Supply Chains Inventory Model Considering Optimal Number of Remanufacturing Times," Sustainability, MDPI, vol. 15(12), pages 1-23, June.
    12. Pinky Saxena & S. R. Singh & Isha Sangal, 2016. "A Multi Item Integrated Inventory Model with Reparability and Manufacturing of Fresh Products," Modern Applied Science, Canadian Center of Science and Education, vol. 10(7), pages 1-74, July.
    13. Hsieh, Chung-Chi & Lathifah, Artya, 2022. "Ordering and waste reuse decisions in a make-to-order system under demand uncertainty," European Journal of Operational Research, Elsevier, vol. 303(3), pages 1290-1303.
    14. M. Masanta & B. C. Giri, 2022. "A closed-loop supply chain model with learning effect, random return and imperfect inspection under price- and quality-dependent demand," OPSEARCH, Springer;Operational Research Society of India, vol. 59(3), pages 1094-1115, September.
    15. Hsien-Jen Lin, 2015. "Two-echelon stochastic inventory system with returns and partial backlogging," International Journal of Systems Science, Taylor & Francis Journals, vol. 46(6), pages 966-975, April.
    16. Sumit Maheshwari & Amrina Kausar & Ahmad Hasan & Chandra K. Jaggi, 2023. "Sustainable inventory model for a three-layer supply chain using optimal waste management," 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. 14(1), pages 216-235, March.
    17. Ata Allah Taleizadeh, 2018. "A constrained integrated imperfect manufacturing-inventory system with preventive maintenance and partial backordering," Annals of Operations Research, Springer, vol. 261(1), pages 303-337, February.
    18. Ashayeri, J. & Heuts, R.M.J. & Jansen, A. & Szczerba, B., 1994. "Inventory management of repairable service parts for personal computers : A case study," Other publications TiSEM 28578c62-2e4d-4345-929f-a, Tilburg University, School of Economics and Management.
    19. Johannes Freiesleben & Nicolas Gu'erin, 2015. "Homogenization and Clustering as a Non-Statistical Methodology to Assess Multi-Parametrical Chain Problems," Papers 1505.03874, arXiv.org, revised Dec 2017.
    20. Chiu, Singa Wang, 2008. "Production lot size problem with failure in repair and backlogging derived without derivatives," European Journal of Operational Research, Elsevier, vol. 188(2), pages 610-615, July.

    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:operea:v:18:y:2018:i:2:d:10.1007_s12351-016-0267-4. 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.