Original scientific paper
Reexamining a single-producer multi-retailer integrated inventory model with rework using algebraic method
Singa Wang Chiu
; Department of Business Administration, Chaoyang University of Technology, Gifong East Road, Wufong, Taichung 413, TAIWAN
Hong-Dar Lin
; Department of Industrial Engineering, Chaoyang University of Technology, Gifong East Road, Wufong, Taichung 413, TAIWAN
Li-Wen Lin
; Department of Industrial Engineering, Chaoyang University of Technology, Gifong East Road, Wufong, Taichung 413, TAIWAN
Yuan-Shyi Peter Chiu
; Department of Industrial Engineering, Chaoyang University of Technology, Gifong East Road, Wufong, Taichung 413, TAIWAN
Abstract
In this study, a single-producer multi-retailer integrated inventory model with rework is reexamined using mathematical modeling and an algebraic method. It is assumed that a product is manufactured through an imperfect production process, and the reworking of random defective items is done right after the regular process in each cycle. After the entire lot is quality assured, multiple shipments will be delivered synchronously to m different retailers in each production cycle. The objective is to find the optimal production lot size and optimal number of
shipments that minimizes total expected costs for such a specific supply chains system. The conventional approach uses differential calculus on system cost function to derive the optimal production- shipment policy (Chiu et al. [1]); in contrast, the proposed algebraic approach is a straightforward method that enables practitioners who may not have sufficient knowledge of calculus to understand and manage real-world systems more effectively.
Keywords
supply chains; algebraic approach; lot size; multiple retailers; rework; multiple shipments
Hrčak ID:
184960
URI
Publication date:
18.7.2013.
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