Skip to main content

Two-Echelon Supply Chain Model in an Imperfect Production with Stochastic Demand Considering the Rework of the Defective Items

  • Conference paper
  • First Online:
  • 576 Accesses

Part of the book series: Studies in Computational Intelligence ((SCI,volume 863))

Abstract

This article presents a two-echelon supply chain model consisting of a single manufacturer and a single retailer. Here, the manufacturer’s production system is imperfect and produces a certain proportion of defective products with the perfect products. The manufacturer starts reworking the defective products at the end of the main production. It is assumed that the customer’s demand to the retailer is stochastic in nature and the retailer’s demand to the manufacturer depends on the customer’s demand for the product to the retailer. Finally, we have derived a cost function of the system. Numerical examples have been presented to clarify the applicability of the proposed model and sensitivity analysis has been presented to study the effect of the change of the parameters on the optimal decision variables.

This is a preview of subscription content, log in via an institution.

Buying options

Chapter
USD   29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD   169.00
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD   219.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info
Hardcover Book
USD   219.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Learn about institutional subscriptions

References

  1. Tripathi, R.P., Misra, S.S.: An optimal inventory policy for items having constant demand and constant deterioration rate with trade credit. Int. J. Inf. Syst. Supply Chain Manag. 5, 89–95 (2012)

    Article  Google Scholar 

  2. Sarkar, B.: A production-inventory model with probabilistic deterioration in two-echelon supply chain management. Appl. Math. Model. 37, 3138–3151 (2013)

    Article  MathSciNet  Google Scholar 

  3. Mateen, A., Chatterjee, A.K., Mitra, S.: VMI for single-vendor multi-retailer supply chains under stochastic demand. Comput. Ind. Eng. 79, 95–102 (2015)

    Article  Google Scholar 

  4. Govindan, K.: The optimal replenishment policy for time-varying stochastic demand under vendor managed inventory. Eur. J. Oper. Res. 242, 402–423 (2015)

    Article  MathSciNet  Google Scholar 

  5. Sadeghian, R., Langaroudi, G.T., Zoraghi, N.: An inventory model for tri-stage supply chain with a warehouse, stochastic demand and multi retailers and vendors. Int. J. Oper. Logist. 4, 125–138 (2015)

    Google Scholar 

  6. Guo, C., Li, X.: A multi-echelon inventory system with supplier selection and order allocation under stochastic demand. Int. J. Prod. Econ. 151, 37–47 (2014)

    Article  Google Scholar 

  7. Taheri-Tolgari, J., Mirzazadeh, A., Jolai, F.: An inventory model for imperfect items under inflationary conditions with considering inspection errors. Comput. Math. Appl. 63, 1007–1019 (2012)

    Article  MathSciNet  Google Scholar 

  8. Sana, S.S.: An economic production lot size model in an imperfect production system. Eur. J. Oper. Res. 201, 158–170 (2010)

    Article  Google Scholar 

  9. Rosenblatt, M.J., Lee, H.L.: Economic production cycles with imperfect production processes. IIE Trans. (Inst. Ind. Eng.) 18, 48–55 (1986)

    Google Scholar 

  10. Pal, S., Mahapatra, G.S., Samanta, G.P.: A three-layer supply chain EPQ model for price-and stock-dependent stochastic demand with imperfect item under rework. J. Uncertain Anal. Appl. 4, 10 (2016)

    Article  Google Scholar 

  11. Pal, S., Mahapatra, G.S.: A manufacturing-oriented supply chain model for imperfect quality with inspection errors, stochastic demand under rework and shortages. Comput. Ind. Eng. 106, 299–314 (2017)

    Article  Google Scholar 

  12. Pal, B., Sana, S.S., Chaudhuri, K.: A mathematical model on EPQ for stochastic demand in an imperfect production system. J. Manuf. Syst. (2013). https://doi.org/10.1016/j.jmsy.2012.11.009

    Article  Google Scholar 

  13. Chiu, S.W., Gong, D.C., Wee, H.M.: Effects of random defective rate and imperfect rework process on economic production quantity model. Jpn. J. Ind. Appl. Math. 21, 375–389 (2004)

    Article  MathSciNet  Google Scholar 

  14. Sarkar, B., Sana, S.S., Chaudhuri, K.: An economic production quantity model with stochastic demand in an imperfect production system. Int. J. Serv. Oper. Manag. 9, 259 (2011)

    Google Scholar 

  15. Das, R.M., Sana, S.S., Chaudhuri, K.: An economic production lot size model for defective items with stochastic demand, backlogging and rework. IMA J. Manag. Math. 25, 159–183 (2014)

    Article  MathSciNet  Google Scholar 

  16. Kundu, S., Chakrabarti, T.: An integrated multi-stage supply chain inventory model with imperfect production process. Int. J. Ind. Eng. Comput. 6, 565–580 (2015)

    Google Scholar 

  17. Singh, N., Vaish, B., Singh, S.: An economic production lot-size (EPLS) model with rework and flexibility under allowable shortages. Int. J. Procure Manag. 5(1), 104–122 (2012)

    Article  Google Scholar 

  18. Khanna, A., Kishore, A., Jaggi, C.K.: Inventory modeling for imperfect production process with inspection errors, sales return imperfect rework process. Int. J. Math. Eng. Manag. Sci. 2, 242–258 (2017)

    Google Scholar 

  19. Sarkar, B., Cárdenas-Barrón, L.E., Sarkar, M., Singgih, M.L.: An economic production quantity model with random defective rate, rework process and backorders for a single stage production system. J. Manuf. Syst. 33, 423–435 (2014)

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Sujata Saha .

Editor information

Editors and Affiliations

Rights and permissions

Reprints and permissions

Copyright information

© 2020 Springer Nature Switzerland AG

About this paper

Check for updates. Verify currency and authenticity via CrossMark

Cite this paper

Saha, S., Chakrabarti, T. (2020). Two-Echelon Supply Chain Model in an Imperfect Production with Stochastic Demand Considering the Rework of the Defective Items. In: Castillo, O., Jana, D., Giri, D., Ahmed, A. (eds) Recent Advances in Intelligent Information Systems and Applied Mathematics. ICITAM 2019. Studies in Computational Intelligence, vol 863. Springer, Cham. https://doi.org/10.1007/978-3-030-34152-7_33

Download citation

Publish with us

Policies and ethics