Title: Manufacturing quality improvement and setup cost reduction in a vendor-buyer supply chain model

Authors: Arunava Majumder; Rekha Guchhait; Biswajit Sarkar

Addresses: Department of Basic Science and Humanities, Techno India College of Technology, Rajarhat, Kolkata 700 156, India ' Department of Mathematics and Statistics, Banasthali Vidyapith, Rajasthan 304 002, India ' Department of Industrial and Management Engineering, Hanyang University, Ansan Gyeonggi-do, 155 88, South Korea

Abstract: Quality improvement and setup cost reduction of any production system are endless procedure. Customer's demand is always intended to have the best quality product and the industries always try to improve the quality of products. This paper develops a two-echelon supply chain model with quality improvement of products and setup cost reduction under controllable lead time. The lead time demand follows a normal distribution and in the second case, it does not consider any specific distribution except a mean and standard deviation. Both models are solved analytically to obtain global solution. Two improved iterative algorithms are developed in order to obtain the optimal results of decision variables numerically to minimise the total system cost. The expected value of additional information is calculated to show the financial effect for collecting the information about lead time demand distribution. Some numerical examples and sensitivity analysis are given to illustrate the model. [Received 8 December 2016; Revised 27 March 2017; Accepted 21 April 2017]

Keywords: supply chain management; SCM; vendor's setup cost reduction; manufacturing quality improvement; distribution free approach.

DOI: 10.1504/EJIE.2017.087678

European Journal of Industrial Engineering, 2017 Vol.11 No.5, pp.588 - 612

Available online: 25 Oct 2017 *

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