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This paper develops a collaborativebusiness model for imperfect process with setup cost and lead time reductions.We propose a simple solution procedure to derive the optimal order quantity,lead time, delivery frequency and setup cost. Shortage during the lead time isassumed to be partially backordered. Numerical examples are carried out to showhow the proposed model can result in a substantial cost savings over thetraditional model.

KEYWORDS

Collaborative Model; Imperfect Process; Lead Time Reduction; Setup Cost Reduction

Cite this paper

Lo, C. 2013 A Collaborative Business Model for Imperfect Process with Setup Cost and Lead Time Reductions. Open Journal of Social Sciences, 1, 6-11. doi: 10.4236-jss.2013.17002.





Autor: Chien-Chung Lo

Fuente: http://www.scirp.org/



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