Integrated inventory model involving quality improvement investment and advance-cash-credit payments

This paper investigates the effects of investment and inspection policies on an integrated production–inventory model involving defective items upstream advance-cash-credit payment provided by supplier. In this model, retailers offer customers a downstream credit period. Furthermore, rate item can be improved through capital co-investment supplier retailer. The objective study was to determine optimal shipping quantity, order alternatives for maximizing supply chain’s joint total profit per unit time. An algorithm developed obtain solution proposed problem. Several numerical examples are used demonstrate analyze parameters changes solutions. Finally, management implications relevant decision makers obtained from examples.