Process is Unreliable and Quantity Discounts Supply Chain Integration Inventory Model

Corresponding Author: Yi Lin Graduate Institute of Industrial and Business Management, National Taipei University of Technology, No. 1, Sec. 3, Zhongxiao E. Rd., Taipei City 106, Taiwan E-mail: [email protected] Abstract: This paper mainly focuses on the discussion of the best economic production quantity of process unreliable and defective items reproduce of the production system. In today's production and manufacturing schedule, the quality of the supply chain often determines the efficiency of a company's operations. However, the traditional method of solving the problem of economic production quantities, mostly assumes that perfect production process does not appear defective items and backorder situation. The suppliers order to compensate for the inconvenience caused by defective products to the buyers, used quantity discounts as a way to compensate the buyers. Therefore, our proposed system based upon the production of the finished goods inventory system. In the process of reproduce of defective products, we will pick out defective products, which cannot reproduce and scrap them; the remaining defective products will be repaired and sent back to the buyer. Through this study, some numerical examples available in this study are provided and the results show that our proposed system can be applied as the usable tool.