Coordinating a two-level supply chain with defective items, inspection errors and price-sensitive demand
This paper presents an integrated inventory model consisting of a vendor and a buyer with imperfect product, imperfect inspection and backorder. We intend to study both inventory and pricing decisions in supply chain system by assuming that the demand is sensitive to the buyer’s selling price. In...
| Main Authors: | , , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Prince of Songkla University
2018-02-01
|
| Series: | Songklanakarin Journal of Science and Technology (SJST) |
| Subjects: | |
| Online Access: | http://rdo.psu.ac.th/sjstweb/journal/40-1/40-1-18.pdf |
| _version_ | 1818230645289123840 |
|---|---|
| author | Wakhid Ahmad Jauhari Rahmad Sulistyanto Pringggo Widyo Laksono |
| author_facet | Wakhid Ahmad Jauhari Rahmad Sulistyanto Pringggo Widyo Laksono |
| author_sort | Wakhid Ahmad Jauhari |
| collection | DOAJ |
| description | This paper presents an integrated inventory model consisting of a vendor and a buyer with imperfect product, imperfect
inspection and backorder. We intend to study both inventory and pricing decisions in supply chain system by assuming that the
demand is sensitive to the buyer’s selling price. In addition, the production cost is formulated by considering raw material cost,
labor cost and advertisement cost. The objective of the model is to determine the delivery quantity, number of deliveries, buyer’s
selling price and number of backorders. An iterative procedure is developed to find the optimal solution. A numerical example is
presented to illustrate the application of the model and a sensitivity analysis is performed to investigate the effect of the changes
in key parameters to the model’s solution.The result show that the buyer’s selling price is sensitive to the changes of the defect
rate and the probability of type I inspection error. |
| first_indexed | 2024-12-12T10:37:47Z |
| format | Article |
| id | doaj.art-f7bc57bf94fa43cba46f851276c96c0a |
| institution | Directory Open Access Journal |
| issn | 0125-3395 |
| language | English |
| last_indexed | 2024-12-12T10:37:47Z |
| publishDate | 2018-02-01 |
| publisher | Prince of Songkla University |
| record_format | Article |
| series | Songklanakarin Journal of Science and Technology (SJST) |
| spelling | doaj.art-f7bc57bf94fa43cba46f851276c96c0a2022-12-22T00:27:09ZengPrince of Songkla UniversitySongklanakarin Journal of Science and Technology (SJST)0125-33952018-02-0140113514510.14456/sjst-psu.2018.2Coordinating a two-level supply chain with defective items, inspection errors and price-sensitive demandWakhid Ahmad Jauhari0Rahmad Sulistyanto1Pringggo Widyo Laksono2Department of Industrial Engineering, Sebelas Maret University Surakarta, 57126 IndonesiaDepartment of Industrial Engineering, Sebelas Maret University Surakarta, 57126 IndonesiaDepartment of Industrial Engineering, Sebelas Maret University Surakarta, 57126 IndonesiaThis paper presents an integrated inventory model consisting of a vendor and a buyer with imperfect product, imperfect inspection and backorder. We intend to study both inventory and pricing decisions in supply chain system by assuming that the demand is sensitive to the buyer’s selling price. In addition, the production cost is formulated by considering raw material cost, labor cost and advertisement cost. The objective of the model is to determine the delivery quantity, number of deliveries, buyer’s selling price and number of backorders. An iterative procedure is developed to find the optimal solution. A numerical example is presented to illustrate the application of the model and a sensitivity analysis is performed to investigate the effect of the changes in key parameters to the model’s solution.The result show that the buyer’s selling price is sensitive to the changes of the defect rate and the probability of type I inspection error.http://rdo.psu.ac.th/sjstweb/journal/40-1/40-1-18.pdfsupply chainimperfect productinspection errorprice sensitive demandbackorders |
| spellingShingle | Wakhid Ahmad Jauhari Rahmad Sulistyanto Pringggo Widyo Laksono Coordinating a two-level supply chain with defective items, inspection errors and price-sensitive demand Songklanakarin Journal of Science and Technology (SJST) supply chain imperfect product inspection error price sensitive demand backorders |
| title | Coordinating a two-level supply chain with defective items, inspection errors and price-sensitive demand |
| title_full | Coordinating a two-level supply chain with defective items, inspection errors and price-sensitive demand |
| title_fullStr | Coordinating a two-level supply chain with defective items, inspection errors and price-sensitive demand |
| title_full_unstemmed | Coordinating a two-level supply chain with defective items, inspection errors and price-sensitive demand |
| title_short | Coordinating a two-level supply chain with defective items, inspection errors and price-sensitive demand |
| title_sort | coordinating a two level supply chain with defective items inspection errors and price sensitive demand |
| topic | supply chain imperfect product inspection error price sensitive demand backorders |
| url | http://rdo.psu.ac.th/sjstweb/journal/40-1/40-1-18.pdf |
| work_keys_str_mv | AT wakhidahmadjauhari coordinatingatwolevelsupplychainwithdefectiveitemsinspectionerrorsandpricesensitivedemand AT rahmadsulistyanto coordinatingatwolevelsupplychainwithdefectiveitemsinspectionerrorsandpricesensitivedemand AT pringggowidyolaksono coordinatingatwolevelsupplychainwithdefectiveitemsinspectionerrorsandpricesensitivedemand |