Joint quality and pricing decisions in lot sizing models with defective items

Zsuzsanna Hauck (), Boualem Rabta and Gerald Reiner

International Journal of Production Economics, 2021, vol. 241, issue C

Abstract: We investigate joint pricing and quality decisions in a lot sizing model for a single product with imperfect quality. We assume that the company performs an exhaustive quality inspection and discards the defective items detected before the demand is fulfilled. Unlike most of the literature, the time spent on the screening is considered as a decision variable which affects both the screening cost and the proportion of the defects which can be detected. The screening cost and the detection rate are general functions of the screening time to express the cost and efficiency of different detection methods. Additionally, consumer behaviour is considered by the use of a price and quality dependent demand function.

Keywords: Quality; Screening time; Pricing; Customer requirements; Lot sizing; Inventory control (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:proeco:v:241:y:2021:i:c:s0925527321002310

DOI: 10.1016/j.ijpe.2021.108255

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