Inventory models with imperfect quality items are studied by researchers in past two decades. Till now none of them have considered the effect of substitutions to cope up with shortage and avoid lost sales. This paper presents an EOQ approach for inventory system with shortages and two types of products with imperfect quality by one way substitution. Our model provides significant advantage for...

Trade credit is a well established promotional tool in the present competitive world and its impact on demand cannot be ignored. Businesses often use trade credit to increase their market share and, in turn, the profit. Undoubtedly, trade credit plays a great role in increasing the demand but it also involves a great risk of nonpayment. In order to reduce the risk of non-payment, businessman at...

Huang [ Journal of Statistics and Management Systems, Vol. 6 (2003), No. 2, pp. 171-180 ] studied the EOQ (Economic Order Quantity) and EPQ (Economic Production Quantity) models with backlogging and defective items using the algebraic approach. He assumed 100% inspection policy and the known proportion of defective items was removed prior to storage or use after the screening process. In this p...

The classical Economic Order Quantity (EPQ) models consider that the production rate is fixed and constant. But in many manufacturing and production processes the production rate is a function of stock on hand. For this sort of situations we develop and analyze an EPQ model with the assumption that the production rate is a function of the on-hand inventory and demand is a function of selling pr...

This paper investigates the effects of information sharing and early order commitment on the performance of four inventory policies used by retailers in a supply chain of one capacitated supplier and four retailers. Model parameters and operating conditions are emulated from a local business supplying a standard product to its retailers. Through computer simulation and subsequent analyses, we f...

We examine cooperative games in supply-chain management termed Inventory Games. Supply-chain management has non-cooperative and cooperative interactions between the participating players. We provide a concise survey of cooperative inventory games in the form of extensions on two basic problems. For deterministic games, Economic Order Quantity-like policies with joint replenishment are of primar...

The paper develops an order quantity model with trade credit plus shortages under learning effects for deteriorating imperfect quality products. Generally, when the lot has items, inspection of a is necessary to improve lot. In this article, seller provides defective his buyer financing scheme, and after that separates whole screening process into two categories, one other non-defective items. ...

Recycling of products has a great impact on contemporary sustainable business strategies. In this study, recycling process in production-inventory model for an imperfect production system with fixed ratio recyclable defective is introduced. The piecewise constant demand rates the non-defective items are considered under run-time, off-time positive stock, and shortages varying conditions. Based ...

The economic production quantity (EPQ) is a commonly used inventory model. An assumption in the EPQ model is that all units produced are perfect. Some researchers have studied the effects after relaxing this assumption on the inventory models. The objective of this paper is to determine the economic production quantity with reduced pricing, rework and reject situations in a single-stage system ...