TITLE:
A Collaborative Business Model for Imperfect Process with Setup Cost and Lead Time Reductions
AUTHORS:
Chien-Chung Lo
KEYWORDS:
Collaborative Model; Imperfect Process; Lead Time Reduction; Setup Cost Reduction
JOURNAL NAME:
Open Journal of Social Sciences,
Vol.1 No.7,
December
12,
2013
ABSTRACT: This paper develops a collaborative
business 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 is
assumed to be partially backordered. Numerical examples are carried out to show
how the proposed model can result in a substantial cost savings over the
traditional model.