A production-reliability-inventory model for a series-parallel system with mixed strategy considering shortage, warranty period, credit period in crisp and stochastic sense

Anushri Maji, Asoke Kumar Bhunia () and Shyamal Kumar Mondal ()
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Anushri Maji: Vidyasagar University
Asoke Kumar Bhunia: The University of Burdwan
Shyamal Kumar Mondal: Vidyasagar University

OPSEARCH, 2022, vol. 59, issue 3, No 6, 862-907

Abstract: Abstract This paper deals with a combined study of production, reliability and inventory consisting of a single manufacturer and a single retailer with two types of model structures: crisp and stochastic. In the crisp model, manufacturer produces a single type of items with system reliability dependent production cost by offering credit period and warranty period to the retailer and the retailer’s demand has been considered as dependent on system reliability, credit period and selling price. Here, raw-materials’ shortages are allowed within the available stock of produced items. In the stochastic model, volume, cost and weight of the produced items have been considered as random parameters, because in reality, these parameters are not fixed. Again, there may be constraint violation in real life situations, so the constraints are treated as chance constraint here. To deal with this stochastic model we have used chance constraint programming technique. The novelty of this current model is the combination of production, reliability and inventory considering raw-materials’ shortages along with crisp and stochastic sense to find the number of active and cold standby components, number of replenishment and raw-materials’ shortage period which maximize the profit and system reliability. We have done numerical simulations based on different cases of crisp and stochastic models and solved the problems using elitist non-dominated sorting genetic algorithm (NSGA-II) and compared the results. Also, a comparison between active and mixed strategies is presented here. Sensitivity analyses provide managerial insights with the impact of several important parameters on profit, demand and system reliability.

Keywords: Reliability; Inventory; Warranty period; Credit period; Chance constraint; NSGA-II (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (3)

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DOI: 10.1007/s12597-022-00578-0

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