ANINTEGRATEDVENDOR-BUYERINVENTORYMODELWITHREWORKING OFIMPERFECTPRODUCTIONITEMSANDSHORTAGEBACKORDERING
Keywords:
Integrated inventory model. imperfect items, rework, backordering, inventory coordination.Abstract
In this paper we develop an integrated vendor-buyer inventory model with imperfect production process. Usually the vendor apply the inspection process for finding the imperfect quality items and selling the imperfect items at a discounted price to a secondary market. Here we develop an inventory model under the concept of reworking the defective items. Mathematical model and numerical examples is provided for the proposed model.
