Just-in-time purchasing: an integrated inventory model involving deterministic variable lead time and quality improvement investment

Just-in-time purchasing: an integrated inventory model involving deterministic variable lead time and quality improvement investment

0.00 Avg rating0 Votes
Article ID: iaor20043440
Country: United Kingdom
Volume: 42
Issue: 5
Start Page Number: 853
End Page Number: 863
Publication Date: Jan 2004
Journal: International Journal of Production Research
Authors: ,
Keywords: production: JIT
Abstract:

Nowadays supply chain management is a popular practice in manufacturing systems, and just-in-time (JIT) production plays a crucial role in supply chain environments. Companies are using JIT production to gain and maintain a competitive advantage. The characteristics of JIT systems are consistent high quality, small lot sizes, frequent delivery, short lead time, and close supplier ties. This paper presents an integrated inventory model to minimize the sum of the ordering/setup cost, holding cost, quality improvement investment and crashing cost by simultaneously optimizing the order quantity, lead time, process quality and number of delivieries while the probability distribution of the lead time demand is normal. This integrated inventory is useful particularly for JIT inventory systems where the vendor and the purchaser form a strategic alliance for profit sharing.

Reviews

Required fields are marked *. Your email address will not be published.