An Inventory Model with Price and Quality Dependent Demand Where Some Items Produced Are Defective. (13th June 2013)

• Record Type: Journal Article
• Authors: Datta, Tapan Kumar
• Other Names: Liao Ching-Jong Academic Editor.
• Is Part Of: Advances in operations research. Volume 2013(2013)
• Publication Date: 2013-06-13
• Subjects: Operations research -- Periodicals; Operations research; Periodicals; 003
• DOI: 10.1155/2013/795078
• Languages: English
• ISSNs: 1687-9147

Abstract

Abstract : This paper analyzes an inventory system for joint determination of product quality and selling price where a fraction of items produced are defective. It is assumed that only a fraction of defective items can be repaired/reworked. The demand rate depends upon both the quality and the selling price of the product. The production rate, unit price, and carrying cost depend upon the quality of the items produced. Quality index is used to determine the quality of the product. An algorithm is provided to solve the model with given values of model parameters. Sensitivity analysis has also been performed.