Manufacturing industries prefer to produce extra units as safety stock especially when demand for these units varies. The phenomena of producing additional units is also observed when processes are imperfect and production managers are sure that product can be consumed in market. In addition, customer is also willing to wait for demands to be backordered in the case of shortages. However, inventory carrying and backordering costs may play vital role if products are produced in relatively large amount. Therefore, a mathematical model is needed that can define the ordered quantity taking safety stock and planned backordering into consideration with imperfect production setup. This paper is an attempt towards development of such mathematical model that considers safety stock, lot size, and planned backorders for a single-stage imperfect production setup. Mathematical model is developed based on minimization of total average cost function. Three decision variables including order quantity, safety stock, and planned backorders have been optimized simultaneously using classical optimization approach. Numerical examples are used to illustrate the proposed model for calculation of decision variables. Impact of changes in processes imperfection, holding costs, and backordering costs over variables have been numerically computed to highlight model significance in daily industrial life. Results prove that safety stock and planned backorder reduce the total cost significantly.
The International Journal of Advanced Manufacturing Technology – Springer Journals
Published: Oct 12, 2017
It’s your single place to instantly
discover and read the research
that matters to you.
Enjoy affordable access to
over 18 million articles from more than
15,000 peer-reviewed journals.
All for just $49/month
Query the DeepDyve database, plus search all of PubMed and Google Scholar seamlessly
Save any article or search result from DeepDyve, PubMed, and Google Scholar... all in one place.
Get unlimited, online access to over 18 million full-text articles from more than 15,000 scientific journals.
Read from thousands of the leading scholarly journals from SpringerNature, Elsevier, Wiley-Blackwell, Oxford University Press and more.
All the latest content is available, no embargo periods.
“Hi guys, I cannot tell you how much I love this resource. Incredible. I really believe you've hit the nail on the head with this site in regards to solving the research-purchase issue.”Daniel C.
“Whoa! It’s like Spotify but for academic articles.”@Phil_Robichaud
“I must say, @deepdyve is a fabulous solution to the independent researcher's problem of #access to #information.”@deepthiw
“My last article couldn't be possible without the platform @deepdyve that makes journal papers cheaper.”@JoseServera