An Integrated Inventory Model with Present Value and Dependent Crashing Cost is Polynomial under the Imperfect Production Process in the Supply Chain

• Main Authors: Mei-Hsin Lin, 林玫欣
• Other Authors: 邱垂昱
• Format: Others
• Language: en_US
• Published: 2008
• Online Access: http://ndltd.ncl.edu.tw/handle/pd85h6

碩士 === 國立臺北科技大學 === 工業工程與管理研究所 === 96 === Due to increasing challenges and changing demand in today’s highly competitive global supply chain environment, reducing lead time and the associated inventory cost are the most important issues in the supply chain. In most of the past studies, they do not consider with time value. However, the effect of inflation is too critical to ignore. So we considered time value and develop an improved integrated inventory model with imperfect quality items and variable lead time crashing cost which determined by the length of lead time is polynomial. It aims at shortening the lead time so as to reduce the present value of integrated inventory joint expected total cost over infinite time horizon. The goal of this paper is to derive simultaneously the optimal order quantity, the length of lead time, process quality and the number of lots which are delivered from the vender to the buyer. Finally, an algorithm procedure of finding the optimal solution is developed, and some numerical examples are given to illustrate results.