Modified economic order quantity (EOQ) model for items with imperfect quality: Game-theoretical approaches
In the recent decade, studying the economic order quantity (EOQ) models with imperfect quality has appealed to many researchers. Only few papers are published discussing EOQ models with imperfect items in a supply chain. In this paper, a two-echelon decentralized supply chain consisting of a manufac...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
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Growing Science
2014-04-01
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| Series: | International Journal of Industrial Engineering Computations |
| Subjects: | |
| Online Access: | http://www.growingscience.com/ijiec/Vol5/IJIEC_2014_3.pdf |
| Summary: | In the recent decade, studying the economic order quantity (EOQ) models with imperfect quality has appealed to many researchers. Only few papers are published discussing EOQ models with imperfect items in a supply chain. In this paper, a two-echelon decentralized supply chain consisting of a manufacture and a supplier that both face just in time (JIT) inventory problem is considered. It is sought to find the optimal number of the shipments and the quantity of each shipment in a way that minimizes the both manufacturer’s and the supplier’s cost functions. To the authors’ best knowledge, this is the first paper that deals with imperfect items in a decentralized supply chain. Thereby, three different game theoretical solution approaches consisting of two non-cooperative games and a cooperative game are proposed. Comparing the results of three different scenarios with those of the centralized model, the conclusions are drawn to obtain the best approach. |
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| ISSN: | 1923-2926 1923-2934 |