Quality improvement and backorder price discount under controllable lead time in an inventory model

Biswajit Sarkar, Buddhadev Mandal, Sumon Sarkar

Research output: Contribution to journalArticle

73 Citations (Scopus)

Abstract

The proposed study investigates a continuous review inventory model with order quantity, reorder point, backorder price discount, process quality, and lead time as decision variables. An investment function is used to improve the process quality. Two models are developed based on the probability distribution of lead time demand. The lead time demand follows a normal distribution in the first model and in the second model it does not follow any specific distribution but mean and standard deviation are known. We prove two lemmas to obtain optimal solutions for the normal distribution model and distribution free model. Finally, some numerical examples are given to illustrate the model.

Original languageEnglish
Pages (from-to)26-36
Number of pages11
JournalJournal of Manufacturing Systems
Volume35
DOIs
Publication statusPublished - 2015 Apr 1

All Science Journal Classification (ASJC) codes

  • Software
  • Control and Systems Engineering
  • Hardware and Architecture
  • Industrial and Manufacturing Engineering

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