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• W1479885323 abstract "An analytical model for a two level supply chain will be developed with different approaches in the literature. Two approaches given by Urban (1998) and Hou (2007) will be used to model the fraction of defectives from the vendor. To our knowledge, this approach of treating the fraction of defectives as a variable in a supply chain context will be the first one. This research will further be enhanced to bring in more practical issues such as learning in the quality of vendor’s items from cycle to cycle. This piece of research provides practitioners with an important finding on how to perceive a supplier or vendor in terms of its quality in a long term contract. This would be of particular interest to industries where cost of quality plays a role. Purpose The purpose of this paper is to answer the research question that how the fraction of defectives shall impact a vendor-buyer supply chain if it is not a fixed value. INTRODUCTION The industry in today’s competitive markets is constantly striving to improve its performance. The performance measures in this regard have been the overall running cost of the business, the share of benefit in a supply chain, customer satisfaction, and defective items returning from the market and the level of trust between stakeholders in a closeknit coordination. Though the response time has become very small due to the advancement in information technology, the industry has to do a lot to get to a zero-defect level. This issue is more significant where human workers are involved in a number of stages of product development. Economic order quantity, EOQ (Harris, 1915) has been a corner stone for many researchers in the field of inventory and supply chain management for long. Though it has been widely accepted and exercised it has some dubious assumptions. The literature pertaining to this stream of research includes models of both single-stage holder and multi-stage scenarios. Porteus (1986), Rosenbalatt and Lee (1986), and Urban (1998) modelled a single-stage scenario with defective items in a lot. Porteus (1986) had pointed out that quality (probability of defective items) impacts the economic order quantity. He assumed that a process can go out of control with a fixed probability thus producing defective items. He had also suggested investing in a process to improve quality. Rosenblatt and Lee (1986) assumed that the time after which a process goes out of control in a cycle takes an exponential distribution. Urban (1998), on the other hand, suggested that the probability of defectives in a production process depends on the cycle length. Salameh and Jaber (2000) presented a new course for this field of literature. They suggested screening defective items at the buyer’s end right after receiving a lot. These defective items were sold at a discounted price after screening. This paper has been extended a number of times recently, for example by Eroglu and Ozdemir (2007), Wee et al. (2007), Maddah and Jaber (2008) and Khan et al. (2010a, 2010b). On the other hand, examples of models describing a multi-stage scenario with defective items are Huang (2002), Goyal et al. (2003), Ben-Daya et al. (2003), Ben-Daya and Rahim (2003) and Ouyang et al. (2006)." @default.
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• W1479885323 title "A vendor-buyer supply chain with a variable fraction of defectives" @default.
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