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This paper proposes single-supplier single-retailer production and inventory models for maximizing the supplier and retailer’s profits in non-cooperative and cooperative environments. The effect of defective items and inspection errors are considered in the proposed models. In addition, we consider that the supplier offers the retailer a quantity threshold to absorb transportation costs for promoting the economies of scale of transport. Mathematical analyses are conducted, and optimal equilibrium production and replenishment strategies for the supplier and retailer are derived under non-cooperative and cooperative situations. Subsequently, we establish two algorithms to explain the optimal equilibrium solutions for these cases. Finally, several numerical examples and a sensitivity analysis with respect to major parameters are presented to demonstrate the theoretical results, compare the distinct solutions, and derive managerial insights.
Yang, Chih-Te 1 ; Ho, Chia-Huei 1 ; Lee, Hsiu-Mei 1 ; Ouyang, Liang-Yuh 1
@article{RO_2018__52_2_453_0,
author = {Yang, Chih-Te and Ho, Chia-Huei and Lee, Hsiu-Mei and Ouyang, Liang-Yuh},
title = {Supplier-retailer production and inventory models with defective items and inspection errors in non-cooperative and cooperative environments},
journal = {RAIRO - Operations Research - Recherche Op\'erationnelle},
pages = {453--471},
publisher = {EDP-Sciences},
volume = {52},
number = {2},
year = {2018},
doi = {10.1051/ro/2017020},
mrnumber = {3880538},
language = {en},
url = {http://geodesic.mathdoc.fr/articles/10.1051/ro/2017020/}
}
TY - JOUR AU - Yang, Chih-Te AU - Ho, Chia-Huei AU - Lee, Hsiu-Mei AU - Ouyang, Liang-Yuh TI - Supplier-retailer production and inventory models with defective items and inspection errors in non-cooperative and cooperative environments JO - RAIRO - Operations Research - Recherche Opérationnelle PY - 2018 SP - 453 EP - 471 VL - 52 IS - 2 PB - EDP-Sciences UR - http://geodesic.mathdoc.fr/articles/10.1051/ro/2017020/ DO - 10.1051/ro/2017020 LA - en ID - RO_2018__52_2_453_0 ER -
%0 Journal Article %A Yang, Chih-Te %A Ho, Chia-Huei %A Lee, Hsiu-Mei %A Ouyang, Liang-Yuh %T Supplier-retailer production and inventory models with defective items and inspection errors in non-cooperative and cooperative environments %J RAIRO - Operations Research - Recherche Opérationnelle %D 2018 %P 453-471 %V 52 %N 2 %I EDP-Sciences %U http://geodesic.mathdoc.fr/articles/10.1051/ro/2017020/ %R 10.1051/ro/2017020 %G en %F RO_2018__52_2_453_0
Yang, Chih-Te; Ho, Chia-Huei; Lee, Hsiu-Mei; Ouyang, Liang-Yuh. Supplier-retailer production and inventory models with defective items and inspection errors in non-cooperative and cooperative environments. RAIRO - Operations Research - Recherche Opérationnelle, Tome 52 (2018) no. 2, pp. 453-471. doi: 10.1051/ro/2017020
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