In this paper, we consider the single vendor single buyer integrated production inventory problem. We relax the assumption of deterministic demand and assume that the lead time is varying lineraly with the lot size. The lead time is composed of a lot size-dependent run time and constant delay times such as moving, waiting and setup times. A solution procedure is suggested for solving the propos...

In this paper, we extend Porteus (1986) to generalize the economic production quantity (EPQ) model with finite production rate and to derive an exact expression for the expected total annual cost function when maintenance actions and capital investment in setup cost reduction are adopted. In addition, the uniqueness property of the optimal lot size and the bounds of optimal lot size are derived...

EPQ model; Replenishment lot size; Multiple deliveries; Random defective items; Production; Rework; Scrap items. Abstract This paper derives the optimal replenishment lot size and shipment policy for an Economic Production Quantity (EPQ) model with multiple deliveries and rework of random defective items. The classic EPQmodel assumes a continuous inventory issuing policy for satisfying demand a...

This paper investigates optimal replenishment lot size and optimal number of shipments for economic production quantity (EPQ) model with rework process using an algebraic approach. The classic EPQ model assumes a perfect quality production for all items produced and a continuous issuing policy for satisfying customer‟s demand. However, in a real life vendor-buyer integrated-production-inventory...

In this paper, the authors propose a non-linear cost function based on ecological considerations for lot-size planning. The classical approaches of lot-size optimization, the Wagner-Whitin algorithm and the Part-Period Balancing heuristic, are enhanced with so-called eco-factors. These eco-enhanced approaches combined with eco-balancing help to reduce overall production costs. Simultaneously, t...

In this article, an imperfect vendor–buyer inventory system with stochastic demand, process quality control and learning in production is investigated. It is assumed that there are learning in production and investment for process quality improvement at the vendor’s end, and lot-size dependent lead-time at the buyer’s end. The lead-time for the first batch and those for the rest of the batches ...