Volume 55, Number 1, January-February 2021
|Page(s)||189 - 211|
|Published online||12 March 2021|
An imperfect production inventory model with advance payment and credit period in a two-echelon supply chain management
Department of Applied Mathematics with Oceanology and Computer Programming, Vidyasagar University, Midnapore 721102, West Bengal India
2 Mahishadal Raj College, Purba Medinipur, West Bengal India
* Corresponding author: email@example.com
Accepted: 26 November 2020
This paper presents an integrated imperfect production inventory model under two layer supply chain management. To ensure the orders, manufacturer convinces the retailer to pay a percentage of the purchasing cost prior to replenish the products and offers the facilities such as (i) delay in payment on the remaining part of the purchasing cost and (ii) free transportation on the basis of advance payment amount. Time dependent development cost is incurred to maintain the reliability of the production system and as a result it reduces the imperfectness of the product during production. Under such circumstances, an integrated profit function has been developed to find the optimum number of production cycle, optimum number of replenishment cycle and hence reliability parameter of the manufacturing system, replenishment quantity for the retailer which maximize the integrated profit. Branch and Bound technique is used to obtain the integer solutions. Furthermore, we derived some useful lemmas and algorithms to obtain the optimum solution. Finally, the model has been illustrated with some numerical examples exploring the sensitivity analysis with respect to some parameters and obtains some managerial insights.
Mathematics Subject Classification: 90B05 / 90B30 / 90B25 / 90B50
Key words: Imperfect production / advance payment / replenishment cycle time / system reliability / credit period / branch and bound technique
© EDP Sciences, ROADEF, SMAI 2021
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