IDEAS home Printed from https://ideas.repec.org/a/wsi/apjorx/v29y2012i06ns0217595912500364.html
   My bibliography  Save this article

Economic Replenishment Plan With Imperfect Production Process And Business-Return Dependent Demand

Author

Listed:
  • CHUN-JEN CHUNG

    (Department of Information Application, Aletheia University, Pei-ShihLi, Matou, Tainan 72147, Taiwan, ROC)

  • HUI-MING WEE

    (Department of Industrial and Systems Engineering, Chung Yuan Christian University, Chungli 32023, Taiwan, ROC)

Abstract

This study considers the supplier's warranty return and the buyer's rebate policy as business-return policy in the supplier–buyer supply chain. The policy as well as the displayed stock level influences the behavior of the buyer. Distinct from the traditional single-stage inventory model, we investigate a two-stage replenishment policy model for deteriorating item considering the effect of imperfect production process, product design, stock level and business-return. A mathematical model utilizing the time weighted inventory (TWI) approach and two-variables fixed point optimization technique is developed to derive the optimal inspection starting time, the number of deliveries, the optimal delivery-time interval and the optimal business-return period. A numerical example is presented to illustrate the model developed. The result shows that the fixed demand rate, the unit holding cost and the unit inspection cost are the critical factors affecting the scheduling and performance of the two-stage supply chain.

Suggested Citation

  • Chun-Jen Chung & Hui-Ming Wee, 2012. "Economic Replenishment Plan With Imperfect Production Process And Business-Return Dependent Demand," Asia-Pacific Journal of Operational Research (APJOR), World Scientific Publishing Co. Pte. Ltd., vol. 29(06), pages 1-32.
    • Handle: RePEc:wsi:apjorx:v:29:y:2012:i:06:n:s0217595912500364
    DOI: 10.1142/S0217595912500364
    as

    Download full text from publisher

    File URL: http://www.worldscientific.com/doi/abs/10.1142/S0217595912500364
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://libkey.io/10.1142/S0217595912500364?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.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. K.Y. Kung & Y.D. Huang & H.M. Wee & Y. Daryanto, 2019. "Production-Inventory System for Deteriorating Items with Machine Breakdown, Inspection, and Partial Backordering," Mathematics, MDPI, vol. 7(7), pages 1-26, 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:wsi:apjorx:v:29:y:2012:i:06:n:s0217595912500364. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Tai Tone Lim (email available below). General contact details of provider: http://www.worldscinet.com/apjor/apjor.shtml .

    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.