EOQ models for a coordinated two-level international supply chain considering imperfect items and environmental impact

M.I.M. Wahab, S.M.H. Mamun and P. Ongkunaruk

International Journal of Production Economics, 2011, vol. 134, issue 1, 151-158

Abstract: For a two-level supply chain, models are presented to determine the optimal production-shipment policy for items with imperfect quality in three different scenarios: (a) both the vendor and the buyer are in the same country, (b) the vendor and the buyer are in different countries where the stochastic behavior of the exchange rate between the two countries is modeled using a mean-reverting process, and (c) environmental impact is incorporated in determining the optimal production-shipment policy by taking into account the fixed and variable carbon emission costs. The objective is to minimize the total expected cost per unit time. For each scenario, considering equal shipment size, the total expected cost per unit time is derived and the solution procedure is proposed. Numerical examples are presented and the results are discussed.

Keywords: Economic; order; quantity; Coordination; Imperfect; quality; Exchange; rate; Environmental; impact (search for similar items in EconPapers)
Date: 2011
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (45)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S092552731100274X
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:proeco:v:134:y:2011:i:1:p:151-158

Access Statistics for this article

International Journal of Production Economics is currently edited by Stefan Minner

More articles in International Journal of Production Economics from Elsevier
Bibliographic data for series maintained by Catherine Liu ().