An EPQ inventory model considering an imperfect production system with probabilistic demand and collaborative approach
Purpose The purpose of this paper is to propose an economic production quantity (EPQ) inventory model considering imperfect items and probabilistic demand for a two-echelon supply chain. The production process is imperfect and the imperfect quality items are removed from the lot size. The demand rat...
- Autores:
-
Salas-Navarro, Katherinne
Acevedo-Chedid, Jaime
Mora Árquez, Gina
F. Florez, Whady
Ospina Mateus, Holman
Sankar Sana, Shib
Cárdenas-Barrón, Leopoldo Eduardo
- Tipo de recurso:
- Article of journal
- Fecha de publicación:
- 2019
- Institución:
- Corporación Universidad de la Costa
- Repositorio:
- REDICUC - Repositorio CUC
- Idioma:
- eng
- OAI Identifier:
- oai:repositorio.cuc.edu.co:11323/7460
- Acceso en línea:
- https://hdl.handle.net/11323/7460
http://doi.org/10.1108/JAMR-07-2019-0141
https://repositorio.cuc.edu.co/
- Palabra clave:
- Optimization
Supply chain
Inventory
EPQ model
Probabilistic demand
- Rights
- openAccess
- License
- Attribution-NonCommercial-NoDerivatives 4.0 International
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An EPQ inventory model considering an imperfect production system with probabilistic demand and collaborative approach |
| title |
An EPQ inventory model considering an imperfect production system with probabilistic demand and collaborative approach |
| spellingShingle |
An EPQ inventory model considering an imperfect production system with probabilistic demand and collaborative approach Optimization Supply chain Inventory EPQ model Probabilistic demand |
| title_short |
An EPQ inventory model considering an imperfect production system with probabilistic demand and collaborative approach |
| title_full |
An EPQ inventory model considering an imperfect production system with probabilistic demand and collaborative approach |
| title_fullStr |
An EPQ inventory model considering an imperfect production system with probabilistic demand and collaborative approach |
| title_full_unstemmed |
An EPQ inventory model considering an imperfect production system with probabilistic demand and collaborative approach |
| title_sort |
An EPQ inventory model considering an imperfect production system with probabilistic demand and collaborative approach |
| dc.creator.fl_str_mv |
Salas-Navarro, Katherinne Acevedo-Chedid, Jaime Mora Árquez, Gina F. Florez, Whady Ospina Mateus, Holman Sankar Sana, Shib Cárdenas-Barrón, Leopoldo Eduardo |
| dc.contributor.author.spa.fl_str_mv |
Salas-Navarro, Katherinne Acevedo-Chedid, Jaime Mora Árquez, Gina F. Florez, Whady Ospina Mateus, Holman Sankar Sana, Shib Cárdenas-Barrón, Leopoldo Eduardo |
| dc.subject.spa.fl_str_mv |
Optimization Supply chain Inventory EPQ model Probabilistic demand |
| topic |
Optimization Supply chain Inventory EPQ model Probabilistic demand |
| description |
Purpose The purpose of this paper is to propose an economic production quantity (EPQ) inventory model considering imperfect items and probabilistic demand for a two-echelon supply chain. The production process is imperfect and the imperfect quality items are removed from the lot size. The demand rate of the inventory system is random and follows an exponential probability density function and the demand of the retailers is depending on the initiatives of the sales team. Design/methodology/approach Two approaches are examined. In the non-collaborative approach, any member of the supply chain can be the leader and takes decisions to optimize the profits, and in the collaborative system, all members make joint decisions about the production, supply, sales and inventory to optimize the profits of the supply chain members. The calculus approach is applied to find the maximum profit related to the members of the supply chain. Findings A numerical example is presented to illustrate the performance of the EPQ model. The results show that collaborative approach generates greater profits to the supply chain and the market’s demand represents the variable behavior and uncertainty that is generated in the replenishment of a supply chain. Originality/value The new and major contributions of this research are: the inventory model considers demand for products is random variable which follows an exponential probability distribution function and it also depends on the initiatives of sales teams, the imperfect production system generates defective items, different cycle time are considered in manufacturer and retailers and collaborative and non-collaborative approaches are also studied. |
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2019 |
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2019 |
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2020-11-24T16:26:38Z |
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2020-11-24T16:26:38Z |
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Artículo de revista |
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http://purl.org/coar/resource_type/c_2df8fbb1 |
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Text |
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info:eu-repo/semantics/article |
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http://purl.org/redcol/resource_type/ART |
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https://hdl.handle.net/11323/7460 |
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http://doi.org/10.1108/JAMR-07-2019-0141 |
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Corporación Universidad de la Costa |
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Corporación Universidad de la Costa REDICUC - Repositorio CUC |
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eng |
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eng |
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Cárdenas-Barrón, L.E., Sana, S.S. A production-inventory model for a two-echelon supply chain when demand is dependent on sales teams' initiatives (2014) International Journal of Production Economics, 155, pp. 249-258. Cited 74 times. DOI: 10.1016/j.ijpe.2014.03.007 Chakraborty, T., Giri, B.C., Chaudhuri, K.S. Production lot sizing with process deterioration and machine breakdown (2008) European Journal of Operational Research, 185 (2), pp. 606-618. Cited 65 times. DOI: 10.1016/j.ejor.2007.01.011 Chung, K.-J., Hou, K.-L. An optimal production run time with imperfect production processes and allowable shortages (2003) Computers and Operations Research, 30 (4), pp. 483-490. Cited 135 times. DOI: 10.1016/S0305-0548(01)00091-0 GROSS D, HARRIS CM On one- for- one- ordering inventory policies with state- dependent leadtimes (1971) Operations Research, 19 (3), pp. 735-760. Cited 19 times. DOI: 10.1287/opre.19.3.735 Harris, F.W. How many parts to make at once (1913) Factory, the Magazine of Management, 10 (2), pp. 135-136. Cited 745 times Rasti, M., Barzoki, J.C., Tsou Hejazi, S.R. Optimal lot size of EPQ model considering imperfect and defective products (2008) Journal of Industrial Engineering International, 4 (7), pp. 59-68. Cited 18 times. Hyun Kim, C., Hong, Y. An optimal production run length in deteriorating production processes (1999) International Journal of Production Economics, 58 (2), pp. 183-189. Cited 127 times. DOI: 10.1016/S0925-5273(98)00119-4 Kundu, A., Guchhait, P., Panigrahi, G., Maiti, M. An imperfect EPQ model for deteriorating items with promotional effort dependent demand (2017) Journal of Intelligent and Fuzzy Systems, 33 (1), pp. 649-666. Cited 4 times. DOI: 10.3233/JIFS-16875 Lee, S.-D., Lan, S.-C., Yang, C.-M. Economic production lot sizing model with stochastic demand (2014) Asia-Pacific Journal of Operational Research, 31 (3), art. no. 1450015, . Cited 2 times. DOI: 10.1142/S0217595914500158 Li, N., Chan, F.T.S., Chung, S.H., Tai, A.H. An EPQ model for deteriorating production system and items with rework (2015) Mathematical Problems in Engineering, 2015, art. no. 957970, . Cited 18 times. DOI: 10.1155/2015/957970 Mateen, A., Chatterjee, A.K., Mitra, S. VMI for single-vendor multi-retailer supply chains under stochastic demand (2015) Computers and Industrial Engineering, 79, pp. 95-102. Cited 40 times. DOI: 10.1016/j.cie.2014.10.028 Navarro, K.S., Chedid, J.A., Florez, W.F., Mateus, H.O., Cárdenas-Barrón, L.E., Sana, S.S. A collaborative EPQ inventory model for a three-echelon supply chain with multiple products considering the effect of marketing effort on demand (2019) Journal of Industrial & Management Optimization, pp. 272-283. Cited 2 times. Pal, B., Sana, S.S., Chaudhuri, K. A mathematical model on EPQ for stochastic demand in an imperfect production system (2013) Journal of Manufacturing Systems, 32 (1), p. 260. Cited 68 times. DOI: 10.1016/j.jmsy.2012.11.009 Pal, S., Mahapatra, G.S. A manufacturing-oriented supply chain model for imperfect quality with inspection errors, stochastic demand under rework and shortages (2017) Computers and Industrial Engineering, 106, pp. 299-314. Cited 26 times. DOI: 10.1016/j.cie.2017.02.003 Rosenblatt, M.J., Lee, H.L. Economic production cycles with imperfect production processes (1986) IIE Transactions (Institute of Industrial Engineers), 18 (1), pp. 48-55. Cited 845 times. DOI: 10.1080/07408178608975329 Sajadieh, M.S., Larsen, C. A coordinated manufacturer-retailer model under stochastic demand and production rate (2015) International Journal of Production Economics, 168, pp. 64-70. Cited 10 times. DOI: 10.1016/j.ijpe.2015.06.013 Salas-Navarro, K., Maiguel-Mejía, H., Acevedo-Chedid, J. Inventory Management Methodology to determine the levels of integration and collaboration in supply chain [Article@Metodología de Gestión de Inventarios para determinar los niveles de integración y colaboración en una cadena de suministro] (2017) Ingeniare, 25 (2), pp. 326-337. Cited 5 times. DOI: 10.4067/S0718-33052017000200326 Salas Navarro, K., Chedid, J.A., Caruso, N.M., Sana, S.S. An inventory model of three-layer supply chain of wood and furniture industry in the Caribbean region of Colombia (2018) International Journal of Systems Science: Operations and Logistics, 5 (1), pp. 69-86. Cited 10 times. DOI: 10.1080/23302674.2016.1212428 Sana, S.S., Chedid, J.A., Navarro, K.S. A three layer supply chain model with multiple suppliers, manufacturers and retailers for multiple items (2014) Applied Mathematics and Computation, 229, pp. 139-150. Cited 33 times. DOI: 10.1016/j.amc.2013.12.006 Sarkar, B., Moon, I. An EPQ model with inflation in an imperfect production system (2011) Applied Mathematics and Computation, 217 (13), pp. 6159-6167. Cited 140 times. DOI: 10.1016/j.amc.2010.12.098 Sarkar, M., Sarkar, B. An economic manufacturing quantity model with probabilistic deterioration in a production system (2013) Economic Modelling, 31 (1), pp. 245-252. Cited 67 times. DOI: 10.1016/j.econmod.2012.11.019 Taft, E.W. The most economical production lot (1918) Iron Age, 101 (18), pp. 1410-1412. Cited 226 times. Tai, A.H. Economic production quantity models for deteriorating/imperfect products and service with rework (2013) Computers and Industrial Engineering, 66 (4), pp. 879-888. Cited 42 times. DOI: 10.1016/j.cie.2013.09.007 Wee, H.M., Widyadana, G.A. A production model for deteriorating items with stochastic preventive maintenance time and rework process with FIFO rule (2013) Omega (United Kingdom), 41 (6), pp. 941-954. Cited 50 times. DOI: 10.1016/j.omega.2012.12.001 Widyadana, G.A., Wee, H.M. An economic production quantity model for deteriorating items with multiple production setups and rework (2012) International Journal of Production Economics, 138 (1), pp. 62-67. Cited 50 times. DOI: 10.1016/j.ijpe.2012.02.025 Zhou, Y.W. A production-inventory model for a finite time horizon with linear trend in demand and shortages (1995) Systems Engineering - Theory and Practice, 5, pp. 43-49. Cited 12 times. Zhou, Y.-W., Chen, J., Wu, Y., Zhou, W. EPQ models for items with imperfect quality and one-time-only discount (2015) Applied Mathematical Modelling, 39 (3-4), pp. 1000-1018. Cited 13 times. DOI: 10.1016/j.apm.2014.07.017 |
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Salas-Navarro, KatherinneAcevedo-Chedid, JaimeMora Árquez, GinaF. Florez, WhadyOspina Mateus, HolmanSankar Sana, ShibCárdenas-Barrón, Leopoldo Eduardo2020-11-24T16:26:38Z2020-11-24T16:26:38Z2019https://hdl.handle.net/11323/7460http://doi.org/10.1108/JAMR-07-2019-0141Corporación Universidad de la CostaREDICUC - Repositorio CUChttps://repositorio.cuc.edu.co/Purpose The purpose of this paper is to propose an economic production quantity (EPQ) inventory model considering imperfect items and probabilistic demand for a two-echelon supply chain. The production process is imperfect and the imperfect quality items are removed from the lot size. The demand rate of the inventory system is random and follows an exponential probability density function and the demand of the retailers is depending on the initiatives of the sales team. Design/methodology/approach Two approaches are examined. In the non-collaborative approach, any member of the supply chain can be the leader and takes decisions to optimize the profits, and in the collaborative system, all members make joint decisions about the production, supply, sales and inventory to optimize the profits of the supply chain members. The calculus approach is applied to find the maximum profit related to the members of the supply chain. Findings A numerical example is presented to illustrate the performance of the EPQ model. The results show that collaborative approach generates greater profits to the supply chain and the market’s demand represents the variable behavior and uncertainty that is generated in the replenishment of a supply chain. Originality/value The new and major contributions of this research are: the inventory model considers demand for products is random variable which follows an exponential probability distribution function and it also depends on the initiatives of sales teams, the imperfect production system generates defective items, different cycle time are considered in manufacturer and retailers and collaborative and non-collaborative approaches are also studied.Salas-Navarro, KatherinneAcevedo-Chedid, Jaime-will be generated-orcid-0000-0001-8318-2636-600Mora Árquez, GinaF. Florez, WhadyOspina Mateus, Holman-will be generated-orcid-0000-0002-2385-774X-600Sankar Sana, ShibCárdenas-Barrón, Leopoldo Eduardo-will be generated-orcid-0000-0002-6290-8095-600application/pdfengCorporación Universidad de la CostaAttribution-NonCommercial-NoDerivatives 4.0 Internationalhttp://creativecommons.org/licenses/by-nc-nd/4.0/info:eu-repo/semantics/openAccesshttp://purl.org/coar/access_right/c_abf2Journal of Advances in Management Researchhttps://www.emerald.com/insight/content/doi/10.1108/JAMR-07-2019-0141OptimizationSupply chainInventoryEPQ modelProbabilistic demandAn EPQ inventory model considering an imperfect production system with probabilistic demand and collaborative approachArtículo de revistahttp://purl.org/coar/resource_type/c_6501http://purl.org/coar/resource_type/c_2df8fbb1Textinfo:eu-repo/semantics/articlehttp://purl.org/redcol/resource_type/ARTinfo:eu-repo/semantics/acceptedVersionCárdenas-Barrón, L.E., Sana, S.S. A production-inventory model for a two-echelon supply chain when demand is dependent on sales teams' initiatives (2014) International Journal of Production Economics, 155, pp. 249-258. Cited 74 times. DOI: 10.1016/j.ijpe.2014.03.007Chakraborty, T., Giri, B.C., Chaudhuri, K.S. Production lot sizing with process deterioration and machine breakdown (2008) European Journal of Operational Research, 185 (2), pp. 606-618. Cited 65 times. DOI: 10.1016/j.ejor.2007.01.011Chung, K.-J., Hou, K.-L. An optimal production run time with imperfect production processes and allowable shortages (2003) Computers and Operations Research, 30 (4), pp. 483-490. Cited 135 times. DOI: 10.1016/S0305-0548(01)00091-0GROSS D, HARRIS CM On one- for- one- ordering inventory policies with state- dependent leadtimes (1971) Operations Research, 19 (3), pp. 735-760. Cited 19 times. DOI: 10.1287/opre.19.3.735Harris, F.W. How many parts to make at once (1913) Factory, the Magazine of Management, 10 (2), pp. 135-136. Cited 745 timesRasti, M., Barzoki, J.C., Tsou Hejazi, S.R. Optimal lot size of EPQ model considering imperfect and defective products (2008) Journal of Industrial Engineering International, 4 (7), pp. 59-68. Cited 18 times.Hyun Kim, C., Hong, Y. An optimal production run length in deteriorating production processes (1999) International Journal of Production Economics, 58 (2), pp. 183-189. Cited 127 times. DOI: 10.1016/S0925-5273(98)00119-4Kundu, A., Guchhait, P., Panigrahi, G., Maiti, M. An imperfect EPQ model for deteriorating items with promotional effort dependent demand (2017) Journal of Intelligent and Fuzzy Systems, 33 (1), pp. 649-666. Cited 4 times. DOI: 10.3233/JIFS-16875Lee, S.-D., Lan, S.-C., Yang, C.-M. Economic production lot sizing model with stochastic demand (2014) Asia-Pacific Journal of Operational Research, 31 (3), art. no. 1450015, . Cited 2 times. DOI: 10.1142/S0217595914500158Li, N., Chan, F.T.S., Chung, S.H., Tai, A.H. An EPQ model for deteriorating production system and items with rework (2015) Mathematical Problems in Engineering, 2015, art. no. 957970, . Cited 18 times. DOI: 10.1155/2015/957970Mateen, A., Chatterjee, A.K., Mitra, S. VMI for single-vendor multi-retailer supply chains under stochastic demand (2015) Computers and Industrial Engineering, 79, pp. 95-102. Cited 40 times. DOI: 10.1016/j.cie.2014.10.028Navarro, K.S., Chedid, J.A., Florez, W.F., Mateus, H.O., Cárdenas-Barrón, L.E., Sana, S.S. A collaborative EPQ inventory model for a three-echelon supply chain with multiple products considering the effect of marketing effort on demand (2019) Journal of Industrial & Management Optimization, pp. 272-283. Cited 2 times.Pal, B., Sana, S.S., Chaudhuri, K. A mathematical model on EPQ for stochastic demand in an imperfect production system (2013) Journal of Manufacturing Systems, 32 (1), p. 260. Cited 68 times. DOI: 10.1016/j.jmsy.2012.11.009Pal, S., Mahapatra, G.S. A manufacturing-oriented supply chain model for imperfect quality with inspection errors, stochastic demand under rework and shortages (2017) Computers and Industrial Engineering, 106, pp. 299-314. Cited 26 times. DOI: 10.1016/j.cie.2017.02.003Rosenblatt, M.J., Lee, H.L. Economic production cycles with imperfect production processes (1986) IIE Transactions (Institute of Industrial Engineers), 18 (1), pp. 48-55. Cited 845 times. DOI: 10.1080/07408178608975329Sajadieh, M.S., Larsen, C. A coordinated manufacturer-retailer model under stochastic demand and production rate (2015) International Journal of Production Economics, 168, pp. 64-70. Cited 10 times. DOI: 10.1016/j.ijpe.2015.06.013Salas-Navarro, K., Maiguel-Mejía, H., Acevedo-Chedid, J. Inventory Management Methodology to determine the levels of integration and collaboration in supply chain [Article@Metodología de Gestión de Inventarios para determinar los niveles de integración y colaboración en una cadena de suministro] (2017) Ingeniare, 25 (2), pp. 326-337. Cited 5 times. DOI: 10.4067/S0718-33052017000200326Salas Navarro, K., Chedid, J.A., Caruso, N.M., Sana, S.S. An inventory model of three-layer supply chain of wood and furniture industry in the Caribbean region of Colombia (2018) International Journal of Systems Science: Operations and Logistics, 5 (1), pp. 69-86. Cited 10 times. DOI: 10.1080/23302674.2016.1212428Sana, S.S., Chedid, J.A., Navarro, K.S. A three layer supply chain model with multiple suppliers, manufacturers and retailers for multiple items (2014) Applied Mathematics and Computation, 229, pp. 139-150. Cited 33 times. DOI: 10.1016/j.amc.2013.12.006Sarkar, B., Moon, I. An EPQ model with inflation in an imperfect production system (2011) Applied Mathematics and Computation, 217 (13), pp. 6159-6167. Cited 140 times. DOI: 10.1016/j.amc.2010.12.098Sarkar, M., Sarkar, B. An economic manufacturing quantity model with probabilistic deterioration in a production system (2013) Economic Modelling, 31 (1), pp. 245-252. Cited 67 times. DOI: 10.1016/j.econmod.2012.11.019Taft, E.W. The most economical production lot (1918) Iron Age, 101 (18), pp. 1410-1412. Cited 226 times.Tai, A.H. Economic production quantity models for deteriorating/imperfect products and service with rework (2013) Computers and Industrial Engineering, 66 (4), pp. 879-888. Cited 42 times. DOI: 10.1016/j.cie.2013.09.007Wee, H.M., Widyadana, G.A. A production model for deteriorating items with stochastic preventive maintenance time and rework process with FIFO rule (2013) Omega (United Kingdom), 41 (6), pp. 941-954. Cited 50 times. DOI: 10.1016/j.omega.2012.12.001Widyadana, G.A., Wee, H.M. An economic production quantity model for deteriorating items with multiple production setups and rework (2012) International Journal of Production Economics, 138 (1), pp. 62-67. Cited 50 times. DOI: 10.1016/j.ijpe.2012.02.025Zhou, Y.W. A production-inventory model for a finite time horizon with linear trend in demand and shortages (1995) Systems Engineering - Theory and Practice, 5, pp. 43-49. Cited 12 times.Zhou, Y.-W., Chen, J., Wu, Y., Zhou, W. EPQ models for items with imperfect quality and one-time-only discount (2015) Applied Mathematical Modelling, 39 (3-4), pp. 1000-1018. Cited 13 times. DOI: 10.1016/j.apm.2014.07.017PublicationORIGINALAn EPQ inventory model considering an imperfect production system with probabilistic demand and collaborative approach.pdfAn EPQ inventory model considering an imperfect production system with probabilistic demand and collaborative approach.pdfapplication/pdf99728https://repositorio.cuc.edu.co/bitstreams/9d671d06-8bf9-4df4-9d94-8bb105ce4a7a/download7b7a412c0c63cde1b9573277d6a53444MD51CC-LICENSElicense_rdflicense_rdfapplication/rdf+xml; charset=utf-8805https://repositorio.cuc.edu.co/bitstreams/b8724b98-edd0-4796-b6fd-39fe49001842/download4460e5956bc1d1639be9ae6146a50347MD52LICENSElicense.txtlicense.txttext/plain; charset=utf-83196https://repositorio.cuc.edu.co/bitstreams/d18d5b07-812e-4e00-a817-573a3c98ecc3/downloade30e9215131d99561d40d6b0abbe9badMD53THUMBNAILAn EPQ inventory model considering an imperfect production system with probabilistic demand and collaborative approach.pdf.jpgAn EPQ inventory model considering an imperfect 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