title: An extended EPQ-based problem with a discontinuous delivery policy, scrap rate, and random breakdown.
abstract: In real supply chain environments, the discontinuous multidelivery policy is often used when finished products need to be transported to retailers or customers outside the production units. To address this real-life production-shipment situation, this study extends recent work using an economic production quantity- (EPQ-) based inventory model with a continuous inventory issuing policy, defective items, and machine breakdown by incorporating a multiple delivery policy into the model to replace the continuous policy and investigates the effect on the optimal run time decision for this specific EPQ model. Next, we further expand the scope of the problem to combine the retailer's stock holding cost into our study. This enhanced EPQ-based model can be used to reflect the situation found in contemporary manufacturing firms in which finished products are delivered to the producer's own retail stores and stocked there for sale. A second model is developed and studied. With the help of mathematical modeling and optimization techniques, the optimal run times that minimize the expected total system costs comprising costs incurred in production units, transportation, and retail stores are derived, for both models. Numerical examples are provided to demonstrate the applicability of our research results.
authors.affiliation: Department of Business Administration, Chaoyang University of Technology, Taichung 413, Taiwan.
authors.forename: Singa Wang
authors.identifier: 0000-0003-0997-033X
authors.initials: SW
authors.lastname: Chiu
authors.affiliation: Department of Industrial Engineering & Management, Chaoyang University of Technology, Wufong District, Taichung 413, Taiwan.
authors.forename: Hong-Dar
authors.identifier: 0000-0003-1875-8779
authors.initials: HD
authors.lastname: Lin
authors.affiliation: Department of Industrial Engineering & Management, Chaoyang University of Technology, Wufong District, Taichung 413, Taiwan.
authors.forename: Ming-Syuan
authors.initials: MS
authors.lastname: Song
authors.affiliation: Department of Industrial Engineering & Management, Chaoyang University of Technology, Wufong District, Taichung 413, Taiwan.
authors.forename: Hsin-Mei
authors.initials: HM
authors.lastname: Chen
authors.affiliation: Department of Industrial Engineering & Management, Chaoyang University of Technology, Wufong District, Taichung 413, Taiwan.
authors.forename: Yuan-Shyi P
authors.initials: YS
authors.lastname: Chiu
references.citation: ScientificWorldJournal. 2013;2013:125893
references.pmid: 24489489
references.citation: ScientificWorldJournal. 2013;2013:916057
references.pmid: 24302880