Economic order quantity model for deteriorating items with imperfect quality and permissible delay on payment
In the classical inventory models, most of the time the issue of quality has not been considered. However, in realistic environment, it can be observed that there may be some defective items in an ordered lot, because of these defective items retailer incurs additional cost due to rejection, repair...
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Online Access: | http://www.growingscience.com/ijiec/Vol2/IJIEC_2010_38.pdf |
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doaj-d84d7527a2bd4fa1bfad79e81b702f7b2020-11-24T23:46:50ZengGrowing ScienceInternational Journal of Industrial Engineering Computations1923-29261923-29342011-04-0122237248Economic order quantity model for deteriorating items with imperfect quality and permissible delay on paymentChandra K. JaggiSatish K. GoelMandeep MittalIn the classical inventory models, most of the time the issue of quality has not been considered. However, in realistic environment, it can be observed that there may be some defective items in an ordered lot, because of these defective items retailer incurs additional cost due to rejection, repair and refund etc. Thus, inspection/screening of lot becomes indispensible in most of the organizations. Moreover, it plays a very essential role when items are of deteriorating in nature. Further, it is generally assumed that payment will be made to the supplier for the goods immediately after receiving the consignment. Whereas, in practice, supplier does offers a certain fixed period to the retailer for settling the account. During this period, supplier charges no interest, but beyond this period interest is being charged as has been agreed upon. On the other hand, retailer can earn interest on the revenue generated during this period. Keeping this scenario in mind, an attempt has been made to formulate an inventory model for deteriorating items with imperfect quality under permissible delay in payments. Results have been validated with the help of a numerical example using Matlab7.0.1. Comprehensive sensitivity analysis has also been presented.http://www.growingscience.com/ijiec/Vol2/IJIEC_2010_38.pdfInventoryImperfect itemsDeteriorationInspectionPermissible delay |
collection |
DOAJ |
language |
English |
format |
Article |
sources |
DOAJ |
author |
Chandra K. Jaggi Satish K. Goel Mandeep Mittal |
spellingShingle |
Chandra K. Jaggi Satish K. Goel Mandeep Mittal Economic order quantity model for deteriorating items with imperfect quality and permissible delay on payment International Journal of Industrial Engineering Computations Inventory Imperfect items Deterioration Inspection Permissible delay |
author_facet |
Chandra K. Jaggi Satish K. Goel Mandeep Mittal |
author_sort |
Chandra K. Jaggi |
title |
Economic order quantity model for deteriorating items with imperfect quality and permissible delay on payment |
title_short |
Economic order quantity model for deteriorating items with imperfect quality and permissible delay on payment |
title_full |
Economic order quantity model for deteriorating items with imperfect quality and permissible delay on payment |
title_fullStr |
Economic order quantity model for deteriorating items with imperfect quality and permissible delay on payment |
title_full_unstemmed |
Economic order quantity model for deteriorating items with imperfect quality and permissible delay on payment |
title_sort |
economic order quantity model for deteriorating items with imperfect quality and permissible delay on payment |
publisher |
Growing Science |
series |
International Journal of Industrial Engineering Computations |
issn |
1923-2926 1923-2934 |
publishDate |
2011-04-01 |
description |
In the classical inventory models, most of the time the issue of quality has not been considered. However, in realistic environment, it can be observed that there may be some defective items in an ordered lot, because of these defective items retailer incurs additional cost due to rejection, repair and refund etc. Thus, inspection/screening of lot becomes indispensible in most of the organizations. Moreover, it plays a very essential role when items are of deteriorating in nature. Further, it is generally assumed that payment will be made to the supplier for the goods immediately after receiving the consignment. Whereas, in practice, supplier does offers a certain fixed period to the retailer for settling the account. During this period, supplier charges no interest, but beyond this period interest is being charged as has been agreed upon. On the other hand, retailer can earn interest on the revenue generated during this period. Keeping this scenario in mind, an attempt has been made to formulate an inventory model for deteriorating items with imperfect quality under permissible delay in payments. Results have been validated with the help of a numerical example using Matlab7.0.1. Comprehensive sensitivity analysis has also been presented. |
topic |
Inventory Imperfect items Deterioration Inspection Permissible delay |
url |
http://www.growingscience.com/ijiec/Vol2/IJIEC_2010_38.pdf |
work_keys_str_mv |
AT chandrakjaggi economicorderquantitymodelfordeterioratingitemswithimperfectqualityandpermissibledelayonpayment AT satishkgoel economicorderquantitymodelfordeterioratingitemswithimperfectqualityandpermissibledelayonpayment AT mandeepmittal economicorderquantitymodelfordeterioratingitemswithimperfectqualityandpermissibledelayonpayment |
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