Journal
ECONOMIC MODELLING
Volume 29, Issue 5, Pages 2016-2023Publisher
ELSEVIER
DOI: 10.1016/j.econmod.2012.04.021
Keywords
Inventory; Supply chain; Imperfect; Production
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The present article investigates an economic order quantity/economic production quantity model in three-layer (manufacturer, vendor and retailer) supply chain management. In each stage, the products may undergo non-conforming quality items which have less value in the market. This model maximizes a collaborating expected profit function while production rate, order quantity, number of shipments with equal sizes are decision variables and unit production cost is a function of production rate. Numerical example is illustrated to test the model. (C) 2012 Elsevier B.V. All rights reserved.
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