Optimizing an Imperfect Production Model with Varying Setup Cost, Price Discount, and Lead Time Under Fuzzy Demand
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ORIGINAL RESEARCH PAPER
Optimizing an Imperfect Production Model with Varying Setup Cost, Price Discount, and Lead Time Under Fuzzy Demand B. Karthick1
· R. Uthayakumar1
Received: 24 March 2020 / Revised: 14 August 2020 / Accepted: 20 August 2020 © Springer Nature Singapore Pte Ltd. 2020
Abstract This article considers the two-tier supply chain based on the single setup multiple delivery (SSMD) policy between a single vendor and a single buyer. The entire production process is performed in a single setup and the logarithmic reduction function is employed to reduce the expense of this setup. As the machine switches from the in-control stage to the out-of-control stage, the output of the manufactured item is found to be defective. Continuous investment has been made to reduce this imperfect production by improving the quality of the item. Furthermore, this model takes into account incomplete product restructuring. In some cases, due to certain issues, such as lead time, the order quantity may not be received on time. The buyer’s lead time duration is controlled by adding the crashing cost. The purpose of this research is to achieve optimum setup cost and defective item percentage with minimum total supply chain cost under a triangular fuzzy demand. Two numerical examples have been considered to evaluate this model. Moreover, sensitivity analysis, graphical representation, and managerial insights are given. Finally, the model obtains the minimum supply chain cost with decision variables as demonstrated by the numerical study. Keywords Imperfect production · Logarithmic reduction · Quality improvement · Price discount · Lead time · Fuzzy demand
Introduction Supply chain management (SCM) is described as the management of the flow of products and services, beginning with the origin of the product and ending with the consumption of the product. Amidst today’s competitive industry, its strategies are considered the backbone of business enterprises. SCM is a technique to coordinate all the players in the supply chain such as manufacturers, distributors, retailers, and customers, then the main vision of the supply chain is to attain the minimum total cost (maximum total profit) among the chain players. Usually, two players are involved in the two-echelon supply chain
B. Karthick
[email protected] R. Uthayakumar [email protected] 1
Department of Mathematics, The Gandhigram Rural Institute (Deemed to be University), Gandhigram, 624 302, Dindigul District, Tamilnadu, India
model, which means one player is a vendor and another player is a buyer. SCM is an integrated system for managing production, wholesale, retail, and logistics operations. Goyal (1977) was the first person to introduce a seller-buyer integrated supply chain model. Lu (1995) has developed a two-level supply chain model between a single seller and multiple retailers. Lo et al. (2007) described the integration of the production inventory model between the vendor and the buyer. This type of supply chain (SC) model attains great attenti
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