Integrated vendor-buyer lot-sizing model with transportation and quality improvement consideration under just-in-time problem

Raden Achmad Chairdino Leuveano, Mohd Nizam Ab Rahman, Wan Mohd Faizal Wan Mahmood, Chairul Saleh

Research output: Contribution to journalArticle

Abstract

This paper deals with the problem of transportation and quality within a Just-in-Time (JIT) inventory replenishment system. Formerly, transportation and quality problem are often modelled separately in most integrated inventory lot-sizing models. Hence, this paper develops an integrated vendor-buyer lot-sizing model by considering transportation and quality improvements into a JIT environment. The model is developed for minimising a total vendor-buyer system cost by optimising decisions such as delivery quantity, production batch, number of shipments, and process quality. Numerical examples and sensitivity analysis are provided to illustrate the proposed model. The developed model was also compared with an enumeration method to analyse the effectiveness of the proposed model to find the optimum solution. The results emphasise that the proposed model contributes to a new approach and obtains a near optimum solution for inventory replenishment decisions. The results are also beneficial to JIT practices as the model can improve the transport payload and reduce the chance of defective products and improving quality-related costs.

Original languageEnglish
Article number944
JournalMathematics
Volume7
Issue number10
DOIs
Publication statusPublished - 1 Oct 2019

Fingerprint

Lot Sizing
Quality Improvement
Model
Inventory Systems
Costs
Enumeration
Batch
Sensitivity Analysis
Numerical Examples

Keywords

  • Integrated lot-sizing model
  • Just-in-time
  • Quality improvement
  • Transportation

ASJC Scopus subject areas

  • Mathematics(all)

Cite this

Integrated vendor-buyer lot-sizing model with transportation and quality improvement consideration under just-in-time problem. / Leuveano, Raden Achmad Chairdino; Ab Rahman, Mohd Nizam; Mahmood, Wan Mohd Faizal Wan; Saleh, Chairul.

In: Mathematics, Vol. 7, No. 10, 944, 01.10.2019.

Research output: Contribution to journalArticle

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