A single-manufacturer multi-retailer integrated inventory model for items with imperfect quality, price sensitive demand and planned back orders

In this paper, we develop an integrated two-echelon supply chain inventory model with a single-manufacturer and multi-retailers in which each retailer’s demand is dependent on selling price of the product. The manufacturer produces single product dispatched order quantities retailers some equal batches. production process imperfect quality products defective percentage random nature follows binomial distribution. Inspection performed by to classify items lot delivered from manufacturer. that were found retailer will be returned at next delivery. Lead time it exponential We also assume shortages are allowed completely backlogged end. A closed form solution maximize expected average profit for both centralized decentralized scenarios obtained. developed models illustrated help numerical examples using stochastic search genetic algorithm (GA). It integration players results impressive increment whole chain. Sensitivity analysis explore impacts key-model parameters