American Institute of Mathematical Sciences

Advanced
  • Previous Article
    New sufficient global optimality conditions for linearly constrained bivalent quadratic optimization problems
  • JIMO Home
  • This Issue
  • Next Article
    First-order optimality conditions for convex semi-infinite min-max programming with noncompact sets
October  2009, 5(4): 867-880. doi: 10.3934/jimo.2009.5.867

A replenishment policy with defective products, backlog and delay of payments

Jun Li 1, , Hairong Feng 1, and  Mingchao Wang 1,

1. 

School of Economics and Management, Southwest Jiaotong University, Chengdu, Sichuan 610031, China, China, China

Received  March 2009 Revised  July 2009 Published  August 2009

This paper develops a model to determine an optimal replenishment policy with defective items and shortage backlogging under conditions of permissible delay of payments. It is assumed that 100% of each lot are screened to separate good and defective items which are classified as imperfect quality and scrap items. Difference between unit selling price and unit purchase cost is also included in our mathematical model and analysis. Under this assumption, we model the retailer's inventory system as an expected profit maximization problem to determine the retailer's optimal inventory cycle time and optimal order quantity. Then, a theorem is established to describe the optimal replenishment policy for the retailer. Finally, numerical examples are given to illustrate the theorem and obtain some managerial phenomena.
Keywords: Backlogging, Inventory, Permissible delay of payments., Defective items, Shortages.
Mathematics Subject Classification: 90B0.
Citation: Jun Li, Hairong Feng, Mingchao Wang. A replenishment policy with defective products, backlog and delay of payments. Journal of Industrial & Management Optimization, 2009, 5 (4) : 867-880. doi: 10.3934/jimo.2009.5.867
[1]

Chui-Yu Chiu, Ming-Feng Yang, Chung-Jung Tang, Yi Lin. Integrated imperfect production inventory model under permissible delay in payments depending on the order quantity. Journal of Industrial & Management Optimization, 2013, 9 (4) : 945-965. doi: 10.3934/jimo.2013.9.945
[2]

Jun Li, Hairong Feng, Kun-Jen Chung. Using the algebraic approach to determine the replenishment optimal policy with defective products, backlog and delay of payments in the supply chain management. Journal of Industrial & Management Optimization, 2012, 8 (1) : 263-269. doi: 10.3934/jimo.2012.8.263
[3]

Biswajit Sarkar, Bijoy Kumar Shaw, Taebok Kim, Mitali Sarkar, Dongmin Shin. An integrated inventory model with variable transportation cost, two-stage inspection, and defective items. Journal of Industrial & Management Optimization, 2017, 13 (4) : 1975-1990. doi: 10.3934/jimo.2017027
[4]

Maryam Ghoreishi, Abolfazl Mirzazadeh, Gerhard-Wilhelm Weber, Isa Nakhai-Kamalabadi. Joint pricing and replenishment decisions for non-instantaneous deteriorating items with partial backlogging, inflation- and selling price-dependent demand and customer returns. Journal of Industrial & Management Optimization, 2015, 11 (3) : 933-949. doi: 10.3934/jimo.2015.11.933
[5]

Javad Taheri-Tolgari, Mohammad Mohammadi, Bahman Naderi, Alireza Arshadi-Khamseh, Abolfazl Mirzazadeh. An inventory model with imperfect item, inspection errors, preventive maintenance and partial backlogging in uncertainty environment. Journal of Industrial & Management Optimization, 2019, 15 (3) : 1317-1344. doi: 10.3934/jimo.2018097
[6]

Tien-Yu Lin, Ming-Te Chen, Kuo-Lung Hou. An inventory model for items with imperfect quality and quantity discounts under adjusted screening rate and earned interest. Journal of Industrial & Management Optimization, 2016, 12 (4) : 1333-1347. doi: 10.3934/jimo.2016.12.1333
[7]

Vincent Choudri, Mathiyazhgan Venkatachalam, Sethuraman Panayappan. Production inventory model with deteriorating items, two rates of production cost and taking account of time value of money. Journal of Industrial & Management Optimization, 2016, 12 (3) : 1153-1172. doi: 10.3934/jimo.2016.12.1153
[8]

Magfura Pervin, Sankar Kumar Roy, Gerhard Wilhelm Weber. A two-echelon inventory model with stock-dependent demand and variable holding cost for deteriorating items. Numerical Algebra, Control & Optimization, 2017, 7 (1) : 21-50. doi: 10.3934/naco.2017002
[9]

Prasenjit Pramanik, Sarama Malik Das, Manas Kumar Maiti. Note on : Supply chain inventory model for deteriorating items with maximum lifetime and partial trade credit to credit risk customers. Journal of Industrial & Management Optimization, 2019, 15 (3) : 1289-1315. doi: 10.3934/jimo.2018096
[10]

Mohsen Lashgari, Ata Allah Taleizadeh, Shib Sankar Sana. An inventory control problem for deteriorating items with back-ordering and financial considerations under two levels of trade credit linked to order quantity. Journal of Industrial & Management Optimization, 2016, 12 (3) : 1091-1119. doi: 10.3934/jimo.2016.12.1091
[11]

Biswajit Sarkar, Buddhadev Mandal, Sumon Sarkar. Preservation of deteriorating seasonal products with stock-dependent consumption rate and shortages. Journal of Industrial & Management Optimization, 2017, 13 (1) : 187-206. doi: 10.3934/jimo.2016011
[12]

Tien-Yu Lin. Effect of warranty and quantity discounts on a deteriorating production system with a Markovian production process and allowable shortages. Journal of Industrial & Management Optimization, 2017, 13 (5) : 0-0. doi: 10.3934/jimo.2020013
[13]

Csilla Bujtás, Zsolt Tuza. Optimal batch codes: Many items or low retrieval requirement. Advances in Mathematics of Communications, 2011, 5 (3) : 529-541. doi: 10.3934/amc.2011.5.529
[14]

Jianxiong Zhang, Zhenyu Bai, Wansheng Tang. Optimal pricing policy for deteriorating items with preservation technology investment. Journal of Industrial & Management Optimization, 2014, 10 (4) : 1261-1277. doi: 10.3934/jimo.2014.10.1261
[15]

Mahdi Karimi, Seyed Jafar Sadjadi, Alireza Ghasemi Bijaghini. An economic order quantity for deteriorating items with allowable rework of deteriorated products. Journal of Industrial & Management Optimization, 2019, 15 (4) : 1857-1879. doi: 10.3934/jimo.2018126
[16]

Dhanya Shajin, A. N. Dudin, Olga Dudina, A. Krishnamoorthy. A two-priority single server retrial queue with additional items. Journal of Industrial & Management Optimization, 2017, 13 (5) : 1-22. doi: 10.3934/jimo.2019085
[17]

Cheng-Kang Chen, Yi-Xiang Liao. A deteriorating inventory model for an intermediary firm under return on inventory investment maximization. Journal of Industrial & Management Optimization, 2014, 10 (4) : 989-1000. doi: 10.3934/jimo.2014.10.989
[18]

Ganfu Wang, Xingzheng Ai, Chen Zheng, Li Zhong. Strategic inventory under suppliers competition. Journal of Industrial & Management Optimization, 2017, 13 (5) : 1-15. doi: 10.3934/jimo.2019048
[19]

Jingzhen Liu, Ka Fai Cedric Yiu, Alain Bensoussan. Ergodic control for a mean reverting inventory model. Journal of Industrial & Management Optimization, 2018, 14 (3) : 857-876. doi: 10.3934/jimo.2017079
[20]

Yeong-Cheng Liou, Siegfried Schaible, Jen-Chih Yao. Supply chain inventory management via a Stackelberg equilibrium. Journal of Industrial & Management Optimization, 2006, 2 (1) : 81-94. doi: 10.3934/jimo.2006.2.81

2018 Impact Factor: 1.025

Tools

Metrics

  • PDF downloads (13)
  • HTML views (0)
  • Cited by (8)

Other articles
by authors

[Back to Top]

Copyright © 2019 American Institute of Mathematical Sciences