THE SINGLE-VENDOR SINGLE-BUYER INTEGRATED INVENTORY PROBLEM WITH QUALITY IMPROVEMENT AND LEAD TIME REDUCTION — MINIMAX DISTRIBUTION-FREE APPROACH

In past two decades, the Japanese successful experience in using Just-In-Time (JIT) production has received a great deal of attention. The underlying goal of JIT is to eliminate waste. This can be achieved through various efforts, such as shortening lead time and improving quality. In this paper, we investigate the impact of investing in quality improvement and lead time reduction on the integrated vendor-buyer inventory model with partial backorders. We assume that the lead time demand probability distribution is unknown, while the mean and standard deviation are known and finite. The minimax distribution-free procedure is applied to solve this problem. Also, numerical examples are given to illustrate the results.

Changing the values of parameters on lot size reorder point model

The Just-In-Time (JIT) philosophy has received a great deal of attention. Several actions such as improving quality, reducing setup cost and shortening lead time have been recognized as effective ways to achieve the underlying goal of JIT. This paper considers the partial backorders, lot size reorder point inventory system with an imperfect production process. The objective is to simultaneously optimize the lot size, reorder point, process quality, setup cost and lead time, constrained on a service level. We assume the explicit distributional form of lead time demand is unknown but the mean and standard deviation are given. The minimax distribution free approach is utilized to solve the problem and a numerical example is provided to illustrate the results. .