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Efficient inventory control for imperfect quality items

Alamri, Adel A., Harris, Irina ORCID: and Syntetos, Aris A. ORCID: 2016. Efficient inventory control for imperfect quality items. European Journal of Operational Research 254 (1) , pp. 92-104. 10.1016/j.ejor.2016.03.058

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In this paper, we present a general EOQ model for items that are subject to inspection for imperfect quality. Each lot that is delivered to the sorting facility undertakes a 100 per cent screening and the percentage of defective items per lot reduces according to a learning curve. The generality of the model is viewed as important both from an academic and practitioner perspective. The mathematical formulation considers arbitrary functions of time that allow the decision maker to assess the consequences of a diverse range of strategies by employing a single inventory model. A rigorous methodology is utilised to show that the solution is a unique and global optimal and a general step-by-step solution procedure is presented for continuous intra-cycle periodic review applications. The value of the temperature history and flow time through the supply chain is also used to determine an efficient policy. Furthermore, coordination mechanisms that may affect the supplier and the retailer are explored to improve inventory control at both echelons. The paper provides illustrative examples that demonstrate the application of the theoretical model in different settings and lead to the generation of interesting managerial insights.

Item Type: Article
Date Type: Publication
Status: Published
Schools: Business (Including Economics)
Subjects: H Social Sciences > HD Industries. Land use. Labor
Publisher: Elsevier
ISSN: 0377-2217
Date of First Compliant Deposit: 5 April 2016
Date of Acceptance: 30 March 2016
Last Modified: 17 Apr 2024 17:07

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