We develop a model to determine an integrated vendor-buyer inventory policy for items with imperfect quality and planned backorders. The production process is imperfect and produces a certain number of defective items with a known probability density function. The vendor delivers the items to the buyer in small lots of equally sized shipments. Upon receipt of the items, the buyer will conduct a...

Previous studies in the issue of inventory models with imperfect quality assumed the defectives could be sold in a batch by the end of the inspection process and the manufacturing systems were push systems. However, the above assumptions may not be true in the pull system in which buyer is powerful. Therefore, in this paper, we develop a new inventory model for items with imperfect quality and ...

The economic order quantity (EOQ) model is the simplest and earliest inventory model in the literature. Its simple mathematics is attributed to its assumptions, which are rarely met. Salameh and Jaber [2000. Economic production quantity model for items with imperfect quality. Int. J. Prod. Econ. 64, 59–64] addressed one of these assumptions that items received or produced are not of perfect qua...

Abstract In this paper, an inventory problem where the cycle must be integer multiple of a known basic period is considered. Furthermore, demand rate in each power time-dependent function. Shortages are allowed but, taking necessities or interests customers into account, only fixed proportion during stock-out satisfied with arrival next replenishment. The costs related to management system orde...

In this article, we study an inventory system for items that have a power demand pattern and where shortages are allowed. We suppose only fixed proportion of during the stock-out period is backordered. The decision variables cycle ratio between initial stock total quantity demanded throughout cycle. objective to maximize Return on Inventory Investment (ROII) defined as profit per unit time over...

This paper investigates the optimal inventory replenishment policy for an economic production quantity (EPQ) model with backordering, rework and machine breakdown taking place in stock piling time. A prior paper by Chiu has examined the lot-sizing problem on an imperfect quality EPQ model. Due to another reliability factor random machine breakdown seems to be inevitable in most real world manuf...