Improvement of inventory control for defective goods supply chain by available time limitation of the production facilities

Salah Alden Ghasimi, Rizauddin Ramli, Nizaroyani Saibani

Research output: Contribution to journalArticle

1 Citation (Scopus)

Abstract

One of the most important competitive criteria in the global marketplace is keeping the customer satisfaction. Timely delivery and cost of finished goods are two important factors for satisfaction of customers. In this study, we proposed a mathematical model to improve inventory control of defective goods supply chain by Available Time Limitation (ATL) of the production facilities. The defective goods are reworking able parts and the-rest are considered as scraps. The aim of the model is to optimize the total costs of production, maintenance, freight, reworking, the quantity of scrap goods and shortage in retailers for three level supply chains. The uniqueness is that it can anticipate the active manufacturers/distributors and the quantity of goods that must be exchanged between them. Finally, the model determines the Economic Production Quantity (EPQ) and appropriate ATL of any production facilities. Our proposed model is novel and we used CPLEX and LINGO to solve the problem. It can be ascertained that based on the results of the model validated the correctness and fine function of the model.

Original languageEnglish
Pages (from-to)5090-5096
Number of pages7
JournalResearch Journal of Applied Sciences, Engineering and Technology
Volume5
Issue number21
Publication statusPublished - 2013

Fingerprint

Inventory control
Supply chains
Customer satisfaction
Costs
Mathematical models
Economics

Keywords

  • CPLEX
  • Defective goods
  • JIT logistic
  • LINGO
  • Supply chain management.

ASJC Scopus subject areas

  • Engineering(all)
  • Computer Science(all)

Cite this

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