Quality improvement and backorder price discount under controllable lead time in an inventory model. (April 2015)

• Record Type: Journal Article
• Authors: Sarkar, Biswajit; Mandal, Buddhadev; Sarkar, Sumon
• Is Part Of: Journal of manufacturing systems. Volume 35(2015)
• Page Start: 26
• Page End: 36
• Publication Date: 2015-04
• Subjects: Quality improvement -- Backorder price discount -- Distribution free approach; Manufacturing processes -- Periodicals; Production engineering -- Data processing -- Periodicals; Robots, Industrial -- Periodicals; Production, Technique de la -- Informatique -- Périodiques; Robots industriels -- Périodiques; Electronic journals; 670.42
• DOI: 10.1016/j.jmsy.2014.11.012
• Languages: English
• ISSNs: 0278-6125

Abstract

Abstract : Highlights: The model assumes backorder price-discount. An investment function is considered to improve the process quality. Distribution free approach is applied in this model. Abstract: The proposed study investigates a continuous review inventory model with order quantity, reorder point, backorder price discount, process quality, and lead time as decision variables. An investment function is used to improve the process quality. Two models are developed based on the probability distribution of lead time demand. The lead time demand follows a normal distribution in the first model and in the second model it does not follow any specific distribution but mean and standard deviation are known. We prove two lemmas to obtain optimal solutions for the normal distribution model and distribution free model. Finally, some numerical examples are given to illustrate the model.