| Summary: | 碩士 === 國立高雄第一科技大學 === 運籌管理系企業管理碩士班 === 102 === Inventory management is a very important issue for both suppliers and retailers, so it’s necessary to build an integrated inventory model for both parties. Besides, if suppliers can be devoted to quality improvement and reduce defective rate, it will help boost the profit for suppliers and retailers. Therefore, with respect to these two concerns, this study investigates the integrated inventory model for immediate return of defective items proposed by Yu, Hsu and Huang (2013) under the consideration of quality improvement cost. By using the criterion of maximizing the integrated total profit of supplier and retailer, the number and the optimal quantity for each shipment, delivery cycle, optimal lot-splitting, and the optimal yearly quality improvement cost for the suppliers are determined. Finally, a numerical example is used to illustrate the proposed integrated inventory model.
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