Open Journal of Social Sciences
Volume 1, Issue 7 (December 2013)
ISSN Print: 2327-5952 ISSN Online: 2327-5960
Google-based Impact Factor: 0.73 Citations
A Collaborative Business Model for Imperfect Process with Setup Cost and Lead Time Reductions ()
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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.
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