Title: A supply chain inventory model for vendor-buyer system with defective items and imperfect inspection process

Authors: Wakhid Ahmad Jauhari; Imanuel Prasetyo Widianto; Cucuk Nur Rosyidi

Addresses: Department of Industrial Engineering, Sebelas Maret University, Jl. Ir Sutami 36 A, Surakarta 57126, Indonesia ' Production System Laboratory, Department of Industrial Engineering, Sebelas Maret University, Jl. Ir Sutami 36 A, Surakarta 57126, Indonesia ' Department of Industrial Engineering, Sebelas Maret University, Jl. Ir Sutami 36 A, Surakarta 57126, Indonesia

Abstract: This paper studies a collaborative vendor-buyer model with defective items and inspection errors. The vendor produces a batch of product and delivers it to the buyer with unequal size policy. The shipment lot delivered from vendor to buyer contains some defective items. The inspection process conducted by the buyer is assumed to be imperfect. The inspector may incorrectly classify non-defective item as defective or incorrectly classify a defective item as non-defective. An easy procedure is developed to find the solutions of the model. The results from numerical example show that the probability of defective items and inspection errors affect the total cost. The type I inspection error gives a greater impact on total cost than that of type II inspection error.

Keywords: supply chain; inventory; vendor; buyer; defective items; inspection error.

DOI: 10.1504/IJMOR.2017.087740

International Journal of Mathematics in Operational Research, 2017 Vol.11 No.4, pp.450 - 469

Received: 31 Dec 2015
Accepted: 04 Mar 2016
Published online: 01 Nov 2017 *

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