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Joint determination of the lot size and number of shipments for a family of integrated vendor–buyer systems considering defective products

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  • Gerardo Treviño-Garza
  • Krystel K. Castillo-Villar
  • Leopoldo Eduardo Cárdenas-Barrón

Abstract

In this paper we present two solution procedures to obtain the solution for a family of economic production quantity inventory models for an integrated vendor–buyer system considering that production system generates defective products, in which the number of shipments must be a discrete value and that the lot size can take continuous (case 1) or integer (case 2) values. These solution procedures provide a more realistic approach for solving a family of inventory models. Previous works only derive the optimal lot size considering the number of shipments as a given value or derive both the lot size and the number of shipments considering both decision variables as continuous. The number of shipments takes integer values in real life and thus it must be considered as a discrete variable. This paper revisits and solves previous inventory models considering the variables (lot size and number of shipments) according to their real-life nature.

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  • 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.
    • Handle: RePEc:taf:tsysxx:v:46:y:2015:i:9:p:1705-1716
    DOI: 10.1080/00207721.2014.886750
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    References listed on IDEAS

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    1. Jia-Chi Tsou & Seyed Hejazi & Morteza Barzoki, 2012. "Economic production quantity model for items with continuous quality characteristic, rework and reject," International Journal of Systems Science, Taylor & Francis Journals, vol. 43(12), pages 2261-2267.
    2. Brojeswar Pal & Shib Sana & Kripasindhu Chaudhuri, 2013. "Maximising profits for an EPQ model with unreliable machine and rework of random defective items," International Journal of Systems Science, Taylor & Francis Journals, vol. 44(3), pages 582-594.
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    4. Yuan-Shyi Peter Chiu & Chih-An Katherine Lin & Huei-Hsin Chang & Victoria Chiu, 2010. "Mathematical modelling for determining economic batch size and optimal number of deliveries for EPQ model with quality assurance," Mathematical and Computer Modelling of Dynamical Systems, Taylor & Francis Journals, vol. 16(4), pages 373-388, July.
    5. Evan L. Porteus, 1986. "Optimal Lot Sizing, Process Quality Improvement and Setup Cost Reduction," Operations Research, INFORMS, vol. 34(1), pages 137-144, February.
    6. Jinn-Tsair Teng & Leopoldo Cárdenas-Barrón & Kuo-Ren Lou & Hui Wee, 2013. "Optimal economic order quantity for buyer–distributor–vendor supply chain with backlogging derived without derivatives," International Journal of Systems Science, Taylor & Francis Journals, vol. 44(5), pages 986-994.
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    1. 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.

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