scholarly journals Technical Note on(Q,r,L)Inventory Model with Defective Items

2010 ◽  
Vol 2010 ◽  
pp. 1-8 ◽  
Author(s):  
Cheng-Tan Tung ◽  
Yu-Wen Wou ◽  
Shih-Wei Lin ◽  
Peter Deng
Keyword(s):  
Analytical Approach ◽  
Optimal Solution ◽  
Technical Note ◽  
Inventory Model ◽  
Reasonable Assumption ◽  
Robust Method ◽  
Inventory Models ◽  
Defective Items ◽  
Stochastic Inventory ◽  
Stochastic Inventory Models

Under a reasonable assumption, we derive an analytical approach that verifies uniqueness of the optimal solution for stochastic inventory models with defective items. Our approach implies a robust method to find the optimal solution.

scholarly journals Ordering Cost Reduction in Inventory Model with Defective Items and Backorder Price Discount

2014 ◽  
Vol 2014 ◽  
pp. 1-14 ◽  
Author(s):  
Karuppuchamy Annadurai ◽  
Ramasamy Uthayakumar
Keyword(s):  
Cost Reduction ◽  
Optimal Solution ◽  
Computer Code ◽  
Inventory Model ◽  
Inventory Models ◽  
Price Discount ◽  
Defective Items ◽  
Numerical Examples ◽  
Ordering Cost Reduction ◽  
Real Market

In the real market, as unsatisfied demands occur, the longer the length of lead time is, the smaller the proportion of backorder would be. In order to make up for the inconvenience and even the losses of royal and patient customers, the supplier may offer a backorder price discount to secure orders during the shortage period. Also, ordering policies determined by conventional inventory models may be inappropriate for the situation in which an arrival lot contains some defective items. To compensate for the inconvenience of backordering and to secure orders, the supplier may offer a price discount on the stockout item. The purpose of this study is to explore a coordinated inventory model including defective arrivals by allowing the backorder price discount and ordering cost as decision variables. There are two inventory models proposed in this paper, one with normally distributed demand and another with distribution free demand. A computer code using the software Matlab 7.0 is developed to find the optimal solution and present numerical examples to illustrate the models. The results in the numerical examples indicate that the savings of the total cost are realized through ordering cost reduction and backorder price discount.

Integrality in Stochastic Inventory Models

2012 ◽  
Author(s):  
Wei Chen ◽  
Milind Dawande ◽  
Ganesh Janakiraman
Keyword(s):  
Inventory Models ◽  
Stochastic Inventory ◽  
Stochastic Inventory Models

scholarly journals Inventory Models with Defective Units and Sub-Lot Inspection

Mathematics ◽  
2020 ◽  
Vol 8 (6) ◽  
pp. 1038
Author(s):  
Han-Wen Tuan ◽  
Gino K. Yang ◽  
Kuo-Chen Hung
Keyword(s):  
Lower Bound ◽  
Optimal Solution ◽  
Upper Bounds ◽  
Interior Solution ◽  
Order Quantity ◽  
Inventory Models ◽  
Defective Items ◽  
Numerical Examples ◽  
Counter Example ◽  
Analytical Foundation

Inventory models must consider the probability of sub-optimal manufacturing and careless shipping to prevent the delivery of defective products to retailers. Retailers seeking to preserve a reputation of quality must also perform inspections of all items prior to sale. Inventory models that include sub-lot sampling inspections provide reasonable conditions by which to establish a lower bound and a pair of upper bounds in terms of order quantity. This should make it possible to determine the conditions of an optimal solution, which includes a unique interior solution to the problem of an order quantity satisfying the first partial derivative. The approach proposed in this paper can be used to solve the boundary. These study findings provide the analytical foundation for an inventory model that accounts for defective items and sub-lot sampling inspections. The numerical examples presented in a previous paper are used to demonstrate the derivation of an optimal solution. A counter-example is constructed to illustrate how existing iterative methods do not necessarily converge to the optimal solution.

Periodic review stochastic inventory models with service level constraint

2009 ◽  
Vol 40 (3) ◽  
pp. 237-243 ◽  
Author(s):  
Chih-Young Hung ◽  
Kuo-Chen Hung ◽  
Wen-Han Tang ◽  
Robert Lin ◽  
Chi-Kae Wang
Keyword(s):  
Service Level ◽  
Periodic Review ◽  
Inventory Models ◽  
Stochastic Inventory ◽  
Stochastic Inventory Models
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