Abstract
This paper develops an integrated imperfect production-inventory system consisting of a retailer and a manufacturer who produces breakable items. As breakable items are very sensitive to transport, in this paper, to stimulate the retailer, the manufacturer offers (1) free transportation subject to the condition that the retailer must have to order a minimum replenishment quantity specified by the manufacturer and (2) a credit period depending on the replenishment quantity. Moreover, malfunctioning of the production system increases due to several kinds of problem and consequently it produces a mixture of perfect and imperfect quality items. So, to maintain the reliability of the production system, development cost has been incorporated. Also to aware the customer about the reliability of the production system, the manufacturer has paid attention to give a constant amount of advertisement regularly during his/her production period. Henceforth, the advertisement dependent demand has been considered here. Under such circumstances, an integrated profit function has been developed and solved by branch and bound technique to obtain the optimum values of the system. From numerical studies, it is revealed that in case of incorporation of the advertisement, the retailer’s average profit, the manufacturer’s average profit and the average integrated profit are higher than that in the case without advertisement.
Similar content being viewed by others
References
Agarwal V, Chao X, Seshadri S (2004) Dynamic balancing of inventory in supply chains. Eur J Oper Res 159(2):296–317
Annadurai K (2013) Integrated inventory model for deteriorating items with price-dependent demand under quantity-dependent trade credit. Int J Manuf Eng. https://doi.org/10.1155/2013/439190
Banerjee A (1986) A joint echonomic lot-size-model for purchaser and vendor. Decis Sci 17(3):292–311
Banu A, Mondal SK (2016) An analysis of credit linked demand in an inventory model with varying ordering cost. Springer Plus 5(1):926
Ben-Daya M, Hariga M (2000) Economic lot scheduling problem with imperfect production processes. J Oper Res Soc 51(7):875–881
Cachon GP, Zipkin PH (1999) Competitive and cooperative inventory policies in a two-stage supply chain. Manag Sci 45(7):936–953
Cho ID (1996) Analysis of optimal production and advertising policies. Int J Syst Sci 27(12):1297–1305
Das BC, Das B, Mondal SK (2013) An integrated supply chain for a deteriorating item with procurement cost dependent credit period. Comput Ind Eng 64(3):788–796
Das BC, Das B, Mondal SK (2014) Optimal transportation and business cycles in an integrated production-inventory model with a discrete credit period. Transp Res E 68:1–13
Das BC, Das B, Mondal SK (2015) An integrated production inventory model under interactive fuzzy credit period for deteriorating item with several markets. Appl Soft Comput 28:453–465
Das BC, Das B, Mondal SK (2017) An integrated production-inventory model with defective item dependent stochastic credit period. Comput Ind Eng 110:255–263
Farahani P, Grunow M, Gunther HO (2012) Integrated production and distribution planning for perishable food products. Flex Serv Manuf J 24:28–51
Goyal SK (1976) An integrated inventory model for a single supplier-single customer problem. Int J Prod Res 15(1):107–111
Goyal SK (1985) Economic order quantity under conditions of permissible delay in payments. J Oper Res Soc 36(4):335–338
Goyal SK (1988) A joint echonomic-lot-size model for purchaser and vendor: a comment. Decis Sci 19(1):236–241
Guchhait P, Maiti MK, Maiti M (2010a) Multi-item inventory model of breakable items with stock-dependent demand under stock and time dependent breakability rate. Comput Ind Eng 59(4):911–920
Guchhait P, Maiti MK, Maiti M (2010b) Production-inventory models for a damageable item with variable demands and inventory costs in an imperfect production process. Int J Prod Econ 144:180–188
Kang CW, Ullah M, Sarkar B, Hussain I, Akhtar R (2017) Impact of random defective rate on lot size focusing work-in-process inventory in manufacturing system. Int J Prod Res 55(6):263–271
Khara B, Dey JK, Mondal SK (2017) An inventory model under development cost dependent imperfect production and reliability dependent demand. J Manag Anal 4(3):258–275
Khouja M, Mehrez A (1994) An economic production lot size model with imperfect quality and variable production rate. J Oper Res Soc 45(12):1405–1417
Kim M, Sarkar B (2017) Multi-stage cleaner production process with quality improvement and lead time dependent ordering cost. J Cleaner Prod 144(15):572–590
Kim MS, Kim JS, Sarkar B, Sarkar M, Iqbal MW (2018) An improved way to calculate imperfect items during long-run production in an integrated inventory model with backorders. J Manuf Syst 47:153–167
Lee S, Kim D (2014) An optimal policy for a single vendor single-buyer integrated productiondistribution model with both deteriorating and defective items. Int J Prod Econ 147:161–170
Liang Y, Zhou F (2011) A two-warehouse inventory model for deteriorating items under conditionally permissible delay in payment. Appl Math Model 35(5):2221–2231
Majumder P, Bera UK, Maiti M (2016) A multi-item EPQ model with imperfect production process for time varying demand with shortages. Hacet J Math Stat 45(3):929–955
Majumder A, Guchhait R, Sarkar B (2017) Manufacturing quality improvement and setup cost reduction in a vendor-buyer supply chain model. Eur J Ind Eng 11(5):588–612
Mandal M, Maiti M (2000) Inventory of damageable items with variable replenishment and stock dependent demand. Asia Pac J Oper Res 17:41–54
Manna AK, Dey JK, Mondal SK (2014) Three-layer supply chain in an imperfect production inventory model with two storage facilities under fuzzy rough environment. J Uncertainty Anal Appl 2:17
Manna AK, Dey JK, Mondal SK (2017) Imperfect production inventory model with production rate dependent defective rate and advertisement dependent demand. Comput Ind Eng 104:9–22
Maragatham M, Gnanvel G (2017) A purchasing inventory model for breakable items with permissible delay in payments and price discount. Ann Pure Appl Math 15(2):305–314
Mondal B, Bhunia AK, Maiti M (2003) An inventory system of ameliorating items for price dependent demand rate. Comput Ind Eng 45(3):443–456
Moon I, Shin E, Sarkar B (2014) Min-max distribution free continuous-review model with a service level constraint and variable lead time. Appl Math Comput 229:310–315
Rathore H (2019) An inventory model with advertisement dependent demand and reliability consideration. Int J Appl Comput Math 5:33
Rosenblatt MJ, Lee HL (1986) Economic production cycles with imperfect production processes. IIE Trans 18(1):48–54
Saha A, Roy A, Kar S, Maiti M (2010) Inventory models for breakable items with stock dependent demand and imprecise constraints. Math Comput Model 52:1771–1782
Salameh M, Jaber MY (2000) Economic production quantity model for items with imperfect quality. Int J Prod Econ 64(1–3):59–64
Sana SS (2011) A production-inventory model of imperfect quality products in a three-layer supply chain. Decis Supp Syst 50(2):539–547
Sarkar B (2012a) An EOQ model with delay-in-payments and time-varying deterioration rate. Math Comput Model 55:367–377
Sarkar B (2012b) An inventory model with reliability in an imperfect production process. Appl Math Comput 218(9):4881–4891
Sarkar B (2012c) An EOQ model with delay in payments and stock dependent demand in the presence of imperfect production. Appl Math Comput 218(17):8295–8308
Sarkar B (2013) A production-inventory model with probabilistic deterioration in two-echelon supply chain management. Appl Math Model 37(5):3138–3151
Sarkar B (2016) Supply chain coordination with variable backorder, inspections, and discount policy for fixed lifetime products. Math Prob Eng 201:6318737
Sarkar B (2019) Mathematical and analytical approach for the management of defective items in a multi-stage production system. Int J Prod Econ 218:896–919
Sarkar B, Majumder A (2013) Integrated vendorbuyer supply chain model with vendors setup cost reduction. Appl Math Comput 224:362–371
Sarkar B, Moon I (2011) An EPQ model with inflation in an imperfect production system. Appl Math Comput 217:6159–6167
Sarkar B, Moon I (2014) Improved quality, set up cost reduction, and variable backorder costs in an imperfect production process. Int J Prod Econ 155:204–213
Sarkar B, Saren S (2016) Product inspection policy for an imperfect production system with inspection errors and warranty cost. Eur J Oper Res 248(1):263–271
Sarkar B, Saren S (2017) Ordering and transfer policy and variable deterioration for a warehouse model. Hacet J Math Stat 46(5):985–1014
Sarkar M, Sarkar B (2013a) An economic manufacturing quantity model with probabilistic deterioration in a production system. Econ Model 31:245–252
Sarkar B, Sarkar S (2013b) Variable deterioration and demand-An inventory model. Econ Model 31:548–556
Sarkar B, Sana SS, Chaudhuri KS (2011) An imperfect production process for time varying demand with inflation and time value of money—an EMQ model. Expert Sys with Appl 38(11):13543–13548
Sarkar B, Cardenas-Barron LE, Sarkar M, Singgih ML (2014a) An economic production quantity model with random defective rate, rework process and backorders for a single stage production system. J Manuf Syst 33(3):423–435
Sarkar B, Gupta H, Chaudhuri KS, Goyal SK (2014b) An integrated inventory model with variable lead time, defective units and delay in payments. Appl Math Comput 237:650–658
Sarkar B, Mandal B, Sarkar S (2015a) Quality improvement and backorder price discount under controllable lead time in an inventory model. J Manuf Syst 35:26–36
Sarkar B, Chaudhuri KS, Moon I (2015b) Manufacturing setup cost reduction and quality improvement for the distribution free continuous-review inventory model with a service level constraint. J Manuf Syst 34:74–82
Sarkar B, Sett BK, Sarkar S (2018a) Optimal production run time and inspection errors in an imperfect production system with warranty. J Ind Manag Opt 14(1):267–282
Sarkar B, Majumder A, Sarkar M, Kim N, Ullah M (2018b) Effects of variable production rate on quality of products in a single-vendor multi-buyer supply chain management. Int J Adv Manuf Technol 99:567–581
Sett BK, Sarkar S, Sarkar B (2017) Optimal buffer inventory and inspection errors in an imperfect production system with preventive maintenance. Int J Adv Manuf Technol 90:545–560
Tayyab M, Sarkar B (2016) Optimal batch quantity in a cleaner multi-stage lean production system with random defective rate. J Cleaner Prod 139:922–934
Teng JT, Chang CT (2005) Economic production quantity models for deteriorating items with price- and stock-dependent demand. Comput Oper Res 32(2):297–308
Tiwari S, Cardenas-Barron LE, Goh M, Shaikh AA (2018) Joint pricing and inventory model for deteriorating items with expiration dates and partial backlogging under two-level partial trade credits in supply chain. Int J Prod Econ 200:16–36
Author information
Authors and Affiliations
Corresponding author
Additional information
Publisher's Note
Springer Nature remains neutral with regard to jurisdictional claims in published maps and institutional affiliations.
Rights and permissions
About this article
Cite this article
Khara, B., Dey, J.K. & Mondal, S.K. An integrated imperfect production system with advertisement dependent demand using branch and bound technique. Flex Serv Manuf J 33, 508–546 (2021). https://doi.org/10.1007/s10696-020-09377-5
Published:
Issue Date:
DOI: https://doi.org/10.1007/s10696-020-09377-5