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Inter-dependent lead-time and ordering cost reduction strategy: a supply chain model with quality control, lead-time dependent backorder and price-sensitive stochastic demand

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  • Monami Das Roy

    (Vidyasagar University)

  • Shib Sankar Sana

    (Kishore Bharati Bhagini Nivedita College)

Abstract

This research work addresses an inter-dependent reduction strategy of lead time and ordering cost in a two-stage single vendor and single buyer supply chain model with price-sensitive stochastic demand. Buyer’s backorder rate is a variable, as it depends on the variable lead time. Quality improvement is another aspect of this study. The objective of this study is three folds. Firstly, reducing the lead time and ordering cost simultaneously. Secondly, improving the quality of products and third, optimizing order lot size, lead time, process quality parameter, safety factor, ordering cost, lead time crashing cost, backorder rate, and the number of deliveries so that the joint expected total profit becomes maximum. Stackelberg game and Joint decision, both approaches are discussed. Numerical result shows that the Joint decision approach gives better result than the Stackelberg game approach. Sensitivity analysis for Case-III with respect to some key parameters has been carried out.

Suggested Citation

  • Monami Das Roy & Shib Sankar Sana, 2021. "Inter-dependent lead-time and ordering cost reduction strategy: a supply chain model with quality control, lead-time dependent backorder and price-sensitive stochastic demand," OPSEARCH, Springer;Operational Research Society of India, vol. 58(3), pages 690-710, September.
    • Handle: RePEc:spr:opsear:v:58:y:2021:i:3:d:10.1007_s12597-020-00499-w
    DOI: 10.1007/s12597-020-00499-w
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    Cited by:

    1. Priyamvada & Prerna Gautam & Aditi Khanna, 2021. "Sustainable production strategies for deteriorating and imperfect quality items with an investment in preservation technology," 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(5), pages 910-918, October.
    2. Hongfang Qiao & Xiaowei Lin & Xideng Zhou & Minglin Jiang, 2022. "Research on Joint Decision-Making of Timely Delivery, Product Quality and Marketing in Supply Chain Based on Differential Game," Sustainability, MDPI, vol. 14(17), pages 1-20, August.

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