Integrated inventory model with backorder and minimal repair in a supply chain

2016 ◽  
Vol 232 (3) ◽  
pp. 546-560 ◽  
Author(s):  
Ming-Feng Yang ◽  
Yi Lin
Keyword(s):  
Preventive Maintenance ◽  
Optimal Number ◽  
Inventory Model ◽  
Integrated Inventory Model ◽  
Production Ratio ◽  
Purchase Cost ◽  
Production Run ◽  
Special Cases ◽  
Integrated Inventory ◽  
Holding Cost

This study explores the feasibility of applying an integrated inventory model with the consideration of incorporating production programs and maintenance to an imperfect process involving a deteriorating production system. The main target of this research is to build an integrated inventory model with the issues of backorder and repair. Additionally, our proposed model tries to provide an optimal number of shipments m and lower cost. Furthermore, this article offers the detailed discussion of two preventive maintenances of the production run period which are named as perfect preventive maintenance and imperfect preventive maintenance. Also, in this study, we develop various special cases that consider the failure rate such as Weibull, geometric and learning effect. Based on the results, the demand and production ratio influences the holding cost and purchase cost and has the highest impact on the integrated model.

scholarly journals Integrated Inventory Model for Single Vendor Multi-Buyer with a Single Item by Considering Warehouse and Capital Constraint

2021 ◽  
Vol 22 (1) ◽  
pp. 71-84
Author(s):  
Agustiandi Agustiandi ◽  
Yoon Mac Kinley Aritonang ◽  
Cherish Rikardo
Keyword(s):  
Inventory Management ◽  
Service Level ◽  
Inventory Model ◽  
Lot Size ◽  
Expected Cost ◽  
Integrated Inventory Model ◽  
Integrated Inventory ◽  
Replenishment Policy ◽  
Holding Cost ◽  
Set Up

Integrated inventory management coordinates all party's replenishment policies to provide optimal benefits. Many models have been developed, but none of them have considered capital and warehouse constraints comprehensively. It may cause the model which cannot be applied, since it has exceeded the capacity. This study developed an integrated inventory model that consisted of one vendor, multi-buyer, and one type of item. The main objective was to minimize the joint total expected cost by considering warehouse, capital, and service level constraint. The optimal formula was constructed by using the Lagrange multipliers method.  The results showed that with an increment in holding cost, the vendor tends to reduce lot size to minimize joint total expected cost. It is vice versa to the increment in set up cost. An increment in buyer service level can increase lot size and reduce order frequency. The buyer capacity is essential to determine its capability to apply the optimal replenishment policy.

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