Mathematical Problems in Engineering
Volume 2008 (2008), Article ID 386252, 18 pages
Imperfect Reworking Process Consideration in Integrated
Inventory Model under Permissible Delay in Payments
1Department of Business Administration, Ching Yun University, Jung 320, Taiwan
2Department of Information Management, Yu Da College of Business, Miaoli County 361, Taiwan
Received 20 September 2007; Accepted 24 April 2008
Academic Editor: Katica Hedrih
Copyright © 2008 Ming-Cheng Lo and Ming-Feng Yang. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
This study develops an improved inventory model to help the enterprises to advance their profit increasing and cost reduction in a single
vendor single-buyer environment with general demand curve, adjustable production rate, and imperfect reworking process under permissible delay in payments. For advancing practical use in a real world,
we are concerned with the following strategy determining, which includes the buyer's optimal selling price, order quantity, and the number of shipments per production run from the vendor to the buyer. An algorithm and numerical analysis are used to illustrate the solution procedure.