An Integrated Vendor and Buyer Inventory Model with Investment for Quality Improvement and Setup Cost Reduction
| Main Authors: | M. Vijayashree, R. Uthayakumar |
|---|---|
| Format: | Article Journal |
| Terbitan: |
, 2016
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| Subjects: | |
| Online Access: |
https://zenodo.org/record/1298435 |
Daftar Isi:
- This paper attempts to determine optimal production run time and joint capital investment in setup cost reduction and process quality for production system such that the total cost is minimized. We assumed that the setup cost and process quality are logarithmic function. Main focus for this paper is the setup cost reduction. The proposed model is based on the total cost for the single vendor and single buyer. Then, an algorithm procedure is developed in order to find the optimal solution and numerical example is used to demonstrate the benefits of the model. By logarithmic investment function, the optimal investment for process quality and setup cost reduction investment also are obtained. Our objective is to develop an algorithm to determine the order quantity, setup cost, process quality and number of deliveries simultaneously, so that the total cost incurred is minimum.