scholarly journals A single-manufacturer multi-retailer integrated inventory model for items with imperfect quality, price sensitive demand and planned back orders

2021 ◽  
Author(s):  
Dipak Barman ◽  
Gour Chandra Mahata
Keyword(s):  
Supply Chain ◽  
Closed Form Solution ◽  
Form Solution ◽  
Inventory Model ◽  
Model Parameters ◽  
Selling Price ◽  
Defective Items ◽  
Imperfect Quality ◽  
Inspection Process ◽  
Order Quantities

In this paper, we develop an integrated two-echelon supply chain inventory model with a single-manufacturer and multi-retailers in which each retailer’s demand is dependent on selling price of the product. The manufacturer produces a single product and dispatched the order quantities of the retailers in some equal batches. The production process is imperfect and produces imperfect quality of products with a defective percentage which is random in nature and follows binomial distribution. Inspection process is performed by the retailers to classify the defective items in each lot delivered from the manufacturer. The defective items that were found by the retailer will be returned to the manufacturer at the next delivery. Lead time is random and it follows an exponential distribution. We also assume that shortages are allowed and are completely backlogged at each retailer’s end. A closed form solution to maximize the expected average profit for both the centralized and the decentralized scenarios are obtained. The developed models are illustrated with the help of some numerical examples using stochastic search genetic algorithm (GA). It is found that integration of the supply chain players results an impressive increment in the profit of the whole supply chain. Sensitivity analysis is also performed to explore the impacts of key-model parameters on the expected average profit of the supply chain.

Non-Cooperative Game Theoretic Approach in Supply Chain With Imperfect Quality Items and Credit Financing

2018 ◽  
pp. 215-232
Author(s):  
Rita Yadav ◽  
Sarla Pareek ◽  
Mandeep Mittal
Keyword(s):  
Supply Chain ◽  
Stackelberg Game ◽  
Decision Variable ◽  
Chain Model ◽  
Selling Price ◽  
Theoretic Approach ◽  
Credit Period ◽  
Imperfect Quality ◽  
Inspection Process ◽  
Credit Financing

This paper considers a supply chain model for imperfect quality items in which retail price of the buyer influences the demand of the product. The seller offers fix credit period for the buyer to stimulate his sales. Each delivered lot, goes through an inspection process at the buyer's end. After the inspection, items are separated into two parts, one is perfect quality items and another is imperfect quality items. The perfect quality items are sold at selling price and the imperfect items are sold at a discounted price immediately after the inspection process. The credit period offered by the seller and the selling price of the seller, both are considered as a decision variable. Relationship between seller and buyer is derived from the non-cooperative Seller- Stackelberg game approach. Optimal selling price, credit period and order quantity are determined by maximizing expected total profit of the supply chain. At the end, numerical examples with sensitivity analysis are given to explain the theory of the paper.

scholarly journals Impact of Imperfect Quality Items on Inventory Management for Two Warehouses with Shortages

2020 ◽  
Vol 5 (5) ◽  
pp. 869-885
Author(s):  
Aastha . ◽  
Sarla Pareek ◽  
Leopoldo Eduardo Cárdenas-Barrón ◽  
Mandeep Mittal
Keyword(s):  
Inventory Management ◽  
Storage Capacity ◽  
Inventory Model ◽  
Optimal Order ◽  
Defective Items ◽  
Imperfect Quality ◽  
Inspection Process ◽  
Total Profit ◽  
The Cost ◽  
The Impact

Generally, the majority of the inventory models work on the concept that overall units produced must be perfect in terms of quality and that the storage capacity of the warehouse is unlimited. In fact, under realistic conditions, it is not possible to manufacture products with complete perfection. Furthermore, there are always some limits associated with storage capacity of the warehouse. This paper formulates an inventory model that considers the impact of imperfect quality items and shortages. The cost of storage in rented warehouse (RW) is greater than own warehouse (OW) due to fact there are better preservation facilities in RW. This work considers that defective items are completely withdrawn after the inspection process. The purpose of this inventory model is to establish the optimal order quantity and backorder size that maximize the total profit. Some numerical examples are solved, and a sensitivity analysis is included.

Ordering Policy for Imperfect-Quality Deteriorating Items with Initial-Inspection and Allowable Shortage under the Condition of Permissible Delay in Payments

2014 ◽  
pp. 65-80
Author(s):  
Chandra K. Jaggi ◽  
Mandeep Mittal
Keyword(s):  
Inventory Model ◽  
Inventory System ◽  
Deteriorating Items ◽  
Defective Items ◽  
Permissible Delay In Payments ◽  
Imperfect Quality ◽  
Ordering Policy ◽  
Inspection Process ◽  
Delay In Payments ◽  
The Impact

While developing the inventory model with shortages under permissible delay in payments, it has been observed in the literature that the researchers have not considered the fact that the retailer can earn interest on the revenue generated after fulfilling the outstanding demand as soon as he receives the new consignment at the start of the cycle. Owing to this fact, the present study investigates the impact of interest earned from revenue generated after fulfilling the stock out at the start of the cycle on a single commodity inventory model with shortages for deteriorating item, in which the whole lot goes through an inspection process on arrival before entering into inventory system, under the conditions of permissible delay in payments. After inspection, the non-defective items are retained to fulfill the demand and the defective items are returned to the supplier. The results have been demonstrated with the help of a numerical example using the tools of Matlab7.0.1.

scholarly journals Inventory Modeling for Deteriorating Imperfect Quality Items with Selling Price Dependent Demand and Shortage Backordering under Credit Financing

2017 ◽  
Vol 2 (2) ◽  
pp. 110-124 ◽  
Author(s):  
Aditi Khanna ◽  
Prerna Gautam ◽  
Chandra K. Chandra K.
Keyword(s):  
Trade Credit ◽  
Optimal Order ◽  
Manufacturing Processes ◽  
Selling Price ◽  
Imperfect Quality ◽  
Inspection Process ◽  
Total Profit ◽  
Credit Financing ◽  
Fierce Competition ◽  
Dependent Demand

The production processes throughout the world aim at improving quality by introducing latest technologies so as to perform well in fierce competition. Despite this due to various unavoidable factors, most of the manufacturing processes end up with certain imperfections. Hence, all the items produced are not of perfect quality. The condition tends to be more susceptible while dealing with items of deteriorating quality; therefore an inspection process is must for screening good quality items from the ordered lot. Demand is assumed to be price dependent and it is represented by a constant price elasticity function. Also to endure with the rapid growth and turbulent markets, the suppliers try to engage and attract retailers through various gimmicks and one such contrivance is offering trade credit, which is proved to be an influential strategy for attracting new customers. In view of this, the present paper develops an inventory model for items of imperfect quality with deterioration under trade-credit policies with price dependent demand. Shortages are allowed and fully backlogged. A mathematical model is developed to depict this scenario. The aim of the study is to optimize the optimal order level, backorder level and selling price so as to maximize the retailer’s total profit. Findings are validated quantitatively by using numerical analysis. Sensitivity analysis is also performed so as to cater some important decision-making insights.

scholarly journals Hybrid TOA/RSS Range-Based Localization with Self-Calibration in Asynchronous Wireless Networks

2019 ◽  
Vol 8 (2) ◽  
pp. 31 ◽  
Author(s):  
Angelo Coluccia ◽  
Alessio Fascista
Keyword(s):  
Low Cost ◽  
Computational Cost ◽  
Closed Form Solution ◽  
Target Position ◽  
Form Solution ◽  
Position Estimation ◽  
Model Parameters ◽  
Time Of Arrival ◽  
Synchronization Errors ◽  
Step Algorithm

The paper addresses the problem of localization based on hybrid received signal strength (RSS) and time of arrival (TOA) measurements, in the presence of synchronization errors among all the nodes in a wireless network, and assuming all parameters are unknown. In most existing schemes, in fact, knowledge of the model parameters is postulated to reduce the high dimensionality of the cost functions involved in the position estimation process. However, such parameters depend on the operational wireless context, and change over time due to the presence of dynamic obstacles and other modification of the environment. Therefore, they should be adaptively estimated “on the field”, with a procedure that must be as simple as possible in order to suit multiple real-time re-calibrations, even in low-cost applications, without requiring human intervention. Unfortunately, the joint maximum likelihood (ML) position estimator for this problem does not admit a closed-form solution, and numerical optimization is practically unfeasible due to the large number of nuisance parameters. To circumvent such issues, a novel two-step algorithm with reduced complexity is proposed: A first calibration phase exploits nodes in known positions to estimate the unknown RSS and TOA model parameters; then, in a second localization step, an hybrid TOA/RSS range estimator is combined with an iterative least-squares procedure to finally estimate the unknown target position. The results show that the proposed hybrid TOA/RSS localization approach outperformed state-of-the-art competitors and, remarkably, achieved almost the same accuracy of the joint ML benchmark but with a significantly lower computational cost.

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