TY - JOUR ID - 2049 TI - An Integrated Inventory Model with Controllable Lead time and Setup Cost Reduction for Defective and Non-Defective Items JO - International Journal of Supply and Operations Management JA - IJSOM LA - en SN - 23831359 AU - Vijayashree, M AU - Uthayakumar, R AD - The Gandhigram Rural Institute – Deemed University, Gandhigram AD - The Gandhigram Rural Institute – Deemed University, Gandhigram Y1 - 2014 PY - 2014 VL - 1 IS - 2 SP - 190 EP - 215 KW - Integrated inventory model KW - Vendor-purchaser coordination KW - Lead time crashing cost KW - Setup cost reduction for defective and non defective items DO - 10.22034/2014.2.04 N2 - In this paper, the study deals with the lead time and setup reduction problem in the vendor-purchaser integrated inventory model. The cost of capital (i.e., opportunity cost) is one of the key factors in making the inventory and investment decisions. Lead time is an important element in any inventory system. The proposed model is presents an integrated inventory model with controllable lead time with setup cost reduction for defective and non defective items under investment for quality improvement. In this analysis, the proposed model, we assumed that the setup cost and process quality is logarithmic function. Setup cost reduction for defective and non defective items, is the main focus for the proposed model. The objective of the proposed model is to minimize the total cost of both the vendor-purchaser. The mathematical model is derived to investigate the effects to the optimal decisions when investment strategies in setup cost reductions are adopted. This paper attempts to determine optimal order quantity, lead time, process quality and setup cost reduction for production system such that the total cost is minimized. A solution procedure is developed to find the optimal solution and numerical examples are presented to illustrate the results of the proposed models. UR - http://www.ijsom.com/article_2049.html L1 - http://www.ijsom.com/article_2049_891c6f2afe3deec3837198bbadf14cb9.pdf ER -