Setup cost reduction in an inventory model with finite-range stochastic lead times

1990 ◽  
Vol 28 (1) ◽  
pp. 199-212 ◽  
Author(s):  
FARROKH NASRI ◽  
JOHN F. AFFISCO ◽  
M. JAVAD PAKNEJAD
Keyword(s):  
Cost Reduction ◽  
Inventory Model ◽  
Lead Times ◽  
Finite Range ◽  
Setup Cost ◽  
Stochastic Lead Times ◽  
Setup Cost Reduction

An integrated inventory model involving discrete setup cost reduction, variable safety factor, selling price dependent demand, and investment

2019 ◽  
Vol 53 (1) ◽  
pp. 39-57 ◽  
Author(s):  
Bikash Koli Dey ◽  
Biswajit Sarkar ◽  
Mitali Sarkar ◽  
Sarla Pareek
Keyword(s):  
Safety Factor ◽  
Cost Reduction ◽  
Lead Time ◽  
Integrated Model ◽  
Inventory Model ◽  
Selling Price ◽  
Setup Cost ◽  
Integrated Inventory Model ◽  
Integrated Inventory ◽  
Setup Cost Reduction

This paper develops a sustainable integrated inventory model for maximizing profit with a controllable lead time, discrete setup cost reduction, and consideration of environmental issues. Contrary to the available literature, this paper considers a discrete setup cost for the vendor, thus making the integrated model sustainable. The customer’s demand is assumed to be selling-price dependent to increase the number of sales, and the lead time demand follows a Poisson distribution. The integrated model is used to optimized the total shipment number, volume of shipments, safety factor, investments, selling-price, and probability of moving between the “in-control” to “out-of-control” states. An algorithm is developed to obtain the numerical results. Numerical examples and sensitivity analyses are given to illustrate the model.

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