OPTIMAL REPLENISHMENT POLICY FOR AN INTEGRATED SUPPLIER–BUYER DETERIORATING INVENTORY MODEL CONSIDERING MULTIPLE JIT DELIVERY AND OTHER COST FUNCTIONS
Chun-Jen Chung and
Hui-Ming Wee ()
Additional contact information
Chun-Jen Chung: Department of Industrial Engineering, Chung Yuan Christian University, Chungli 32023, Taiwan, ROC
Hui-Ming Wee: Department of Industrial Engineering, Chung Yuan Christian University, Chungli 32023, Taiwan, ROC
Asia-Pacific Journal of Operational Research (APJOR), 2007, vol. 24, issue 01, 125-145
Abstract:
This study develops an integrated deteriorating inventory policy for a single-buyer–single-supplier model with multiple JIT deliveries considering the transportation cost, inspection cost and the cost of less flexibility. Distinct from the former concept of average inventory level, our paper proposes a significantly different approach to deal with the first production batch and uses a revised method to approximate the relationship between the supplier's production time and the storage time. We provide a rigorous analysis to derive the number of inspection and deliveries, the optimal cycle time of deliveries, and the delivery size for the replenishment policy of the integrated buyer–supplier inventory deteriorating model. It is shown that the unit inspection cost is one of the critical factors affecting the deteriorating inventory model. A numerical example is presented to illustrate the theory.
Keywords: Integrated deteriorating model; JIT delivery; production and inventory; flexibility; inspection (search for similar items in EconPapers)
Date: 2007
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)
Downloads: (external link)
http://www.worldscientific.com/doi/abs/10.1142/S0217595907001127
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:wsi:apjorx:v:24:y:2007:i:01:n:s0217595907001127
Ordering information: This journal article can be ordered from
DOI: 10.1142/S0217595907001127
Access Statistics for this article
Asia-Pacific Journal of Operational Research (APJOR) is currently edited by Gongyun Zhao
More articles in Asia-Pacific Journal of Operational Research (APJOR) from World Scientific Publishing Co. Pte. Ltd.
Bibliographic data for series maintained by Tai Tone Lim ().