An integrated vendor-buyer model with quadratic demand under inspection policy and preservation technology

Year 2020, Volume: 49 Issue: 3, 1168 - 1189, 02.06.2020

Magfura Pervin Sankar Kumar Roy Gerhard-wilhelm Weber

https://doi.org/10.15672/hujms.476056

Cited By: 29

Abstract

An integrated vendor-buyer model for deteriorating items is formulated in this study. To control deterioration rate, the vendor adopts preservation technology. Shortages are allowed for both vendor and buyer. During shortage period, the vendor simply doubles the production rate to meet the demand of buyer. The vendor's demand during non-shortage period follows a constant rate but, the demand is a quadratic decreasing function of time in shortage period. The buyer's demand is a quadratic increasing function of time when shortage does not occur but at shortages period, the demand is constant. The buyer accepts an inspection policy for imperfect product. Total cost is calculated for both the model and integrated system. Thereafter, the model is solved by minimizing the total cost. Numerical examples are given to show the applicability of the model. A sensitivity analysis is done to display the realistic applicability of our model and method.

Keywords

Integrated inventory model, Quadratic demand, Inspection policy, Preservation technology, Optimization

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