An economic production quantity (EPQ) model for a customer-dominated supply chain with defective items, reworking and scrap

Christoph H. Glock and Mohamad Y. Jaber

International Journal of Services and Operations Management, 2013, vol. 14, issue 2, 236-251

Abstract: This paper investigates the production-inventory policy for a manufacturer operating in a supply chain environment where the manufacturer is not the chain leader. The chain leader dictates the size and the interval of the shipments. Large penalties set by the chain leader on short shipments preclude the permission of shortages. This might require the manufacturer to produce in larger, non-optimal lots to ensure that all orders are fulfilled as agreed upon with the chain leader. Larger lots, however, subjugate the manufacturer to the risk of an imperfect production process and reworks. A new mathematical model is developed that describes this situation and numerical results are discussed.

Keywords: supply chain management; SCM; shipment size; shipment time; lot sizing; imperfect production; reworking; scrap; economic production quantity; EPQ; customer-dominated supply chains; defective items; production-inventory policy; mathematical modelling. (search for similar items in EconPapers)
Date: 2013
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.inderscience.com/link.php?id=51831 (text/html)
Access to full text is restricted to subscribers.

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:ids:ijsoma:v:14:y:2013:i:2:p:236-251

Access Statistics for this article

More articles in International Journal of Services and Operations Management from Inderscience Enterprises Ltd
Bibliographic data for series maintained by Sarah Parker ().