A study of an integrated inventory model for imperfect production system with backorders
نویسندگان
چکیده
In recent years, companies have found that there are substantial benefit and competitive advantage from establishing a long-term sole-supplier relationship with supplier. In the integrated inventory model practices characterized by a sole-supplier base whose firm is located close to the buyer’s plant and makes frequent deliveries is considered a long-term partner with the buying company. The characteristics of the integrated inventory model are consistent high quality, small lot sizes, frequent delivery, short lead time, and close supplier ties. This paper presents an integrated inventory model with backorders. That is, it is assumed that shortage during the lead time is permitted, the lead time can be reduced at added cost. The purpose of this research is to develop an integrated inventory model for minimizing the total joint annual costs incurred by the vendor and the purchaser. An algorithmic procedure is established to find the optimal order quantity, lead time and number of deliveries simultaneously for the case of normally distributed lead time demand.
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