An integrated inventory model with variable transportation cost, two-stage inspection, and defective items

Biswajit Sarkar, Bijoy K. Shaw, Taebok Kim, Mitali Sarkar, Dongmin Shin

Research output: Contribution to journalArticle

6 Citations (Scopus)

Abstract

The paper deals with an integrated inventory model with make- to-order policy from buyer to vendor. A variable transportation cost is used as a power function of the delivery quantity for either tapering or considering proportional rate data to maintain single-setup multi-delivery (SSMD) policy with reduced transportation cost. A two-stage inspection process is introduced by the vendor to ensure the perfect quality of product even though the first inspection process indicates a constant defective rate of imperfect production is present during the long-run production system and all defective items are reworked with some fixed cost. The aim is to minimize the total cost of the integrated inventory model by using classical optimization technique. Two numerical examples, sensitivity analysis, and graphical representations are given to illustrate the model.

Original languageEnglish
Pages (from-to)1975-1990
Number of pages16
JournalJournal of Industrial and Management Optimization
Volume13
Issue number4
DOIs
Publication statusPublished - 2017 Oct 1

Fingerprint

Inventory Model
Integrated Model
Inspection
Costs
Tapering
Graphical Representation
Power Function
Production Systems
Long-run
Imperfect
Optimization Techniques
Sensitivity analysis
Sensitivity Analysis
Directly proportional
Minimise
Numerical Examples
Vendors
Transportation costs
Integrated inventory model
Policy

All Science Journal Classification (ASJC) codes

  • Business and International Management
  • Strategy and Management
  • Control and Optimization
  • Applied Mathematics

Cite this

@article{95b8ccc4f63a492386117c6283831ed3,
title = "An integrated inventory model with variable transportation cost, two-stage inspection, and defective items",
abstract = "The paper deals with an integrated inventory model with make- to-order policy from buyer to vendor. A variable transportation cost is used as a power function of the delivery quantity for either tapering or considering proportional rate data to maintain single-setup multi-delivery (SSMD) policy with reduced transportation cost. A two-stage inspection process is introduced by the vendor to ensure the perfect quality of product even though the first inspection process indicates a constant defective rate of imperfect production is present during the long-run production system and all defective items are reworked with some fixed cost. The aim is to minimize the total cost of the integrated inventory model by using classical optimization technique. Two numerical examples, sensitivity analysis, and graphical representations are given to illustrate the model.",
author = "Biswajit Sarkar and Shaw, {Bijoy K.} and Taebok Kim and Mitali Sarkar and Dongmin Shin",
year = "2017",
month = "10",
day = "1",
doi = "10.3934/jimo.2017027",
language = "English",
volume = "13",
pages = "1975--1990",
journal = "Journal of Industrial and Management Optimization",
issn = "1547-5816",
publisher = "American Institute of Mathematical Sciences",
number = "4",

}

An integrated inventory model with variable transportation cost, two-stage inspection, and defective items. / Sarkar, Biswajit; Shaw, Bijoy K.; Kim, Taebok; Sarkar, Mitali; Shin, Dongmin.

In: Journal of Industrial and Management Optimization, Vol. 13, No. 4, 01.10.2017, p. 1975-1990.

Research output: Contribution to journalArticle

TY - JOUR

T1 - An integrated inventory model with variable transportation cost, two-stage inspection, and defective items

AU - Sarkar, Biswajit

AU - Shaw, Bijoy K.

AU - Kim, Taebok

AU - Sarkar, Mitali

AU - Shin, Dongmin

PY - 2017/10/1

Y1 - 2017/10/1

N2 - The paper deals with an integrated inventory model with make- to-order policy from buyer to vendor. A variable transportation cost is used as a power function of the delivery quantity for either tapering or considering proportional rate data to maintain single-setup multi-delivery (SSMD) policy with reduced transportation cost. A two-stage inspection process is introduced by the vendor to ensure the perfect quality of product even though the first inspection process indicates a constant defective rate of imperfect production is present during the long-run production system and all defective items are reworked with some fixed cost. The aim is to minimize the total cost of the integrated inventory model by using classical optimization technique. Two numerical examples, sensitivity analysis, and graphical representations are given to illustrate the model.

AB - The paper deals with an integrated inventory model with make- to-order policy from buyer to vendor. A variable transportation cost is used as a power function of the delivery quantity for either tapering or considering proportional rate data to maintain single-setup multi-delivery (SSMD) policy with reduced transportation cost. A two-stage inspection process is introduced by the vendor to ensure the perfect quality of product even though the first inspection process indicates a constant defective rate of imperfect production is present during the long-run production system and all defective items are reworked with some fixed cost. The aim is to minimize the total cost of the integrated inventory model by using classical optimization technique. Two numerical examples, sensitivity analysis, and graphical representations are given to illustrate the model.

UR - http://www.scopus.com/inward/record.url?scp=85030532187&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=85030532187&partnerID=8YFLogxK

U2 - 10.3934/jimo.2017027

DO - 10.3934/jimo.2017027

M3 - Article

AN - SCOPUS:85030532187

VL - 13

SP - 1975

EP - 1990

JO - Journal of Industrial and Management Optimization

JF - Journal of Industrial and Management Optimization

SN - 1547-5816

IS - 4

ER -