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Replenishment, production and quality control strategies in three-stage supply chain

Author

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  • Hlioui, Rached
  • Gharbi, Ali
  • Hajji, Adnène
Abstract
In this paper, we propose to jointly integrate and coordinate production, replenishment and quality inspection decisions in a three-stage supply chain control problem. The transformation stage produces one final product type and responds to a stable market demand. After a random lead time, the supplier delivers raw materials in batches which may each contain a certain proportion of defective items. When a lot of raw materials is received, a lot-by-lot acceptance sampling plan is applied, and then a decision is taken with regards to a 100% screening or discarding of the sampled lot. In this article, we focus on the existing interaction between the applicable quality control decisions and the replenishment and production control decisions. The objective is to determine a control policy for production, replenishment and quality activities which minimizes the total cost, including purchasing costs, production and quality inspection costs, as well as the inventory/backlog costs. A simulation model and a Response Surface Methodology are used to find the optimal parameters of the proposed policy. The obtained results show that the integration of 100% screening or discarding decisions in a new “hybrid” one is more beneficial, and guarantees a better coordination at a lower cost.

Suggested Citation

  • Hlioui, Rached & Gharbi, Ali & Hajji, Adnène, 2015. "Replenishment, production and quality control strategies in three-stage supply chain," International Journal of Production Economics, Elsevier, vol. 166(C), pages 90-102.
    • Handle: RePEc:eee:proeco:v:166:y:2015:i:c:p:90-102
    DOI: 10.1016/j.ijpe.2015.04.015
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    References listed on IDEAS

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    1. S. Andrew Starbird, 2005. "Moral Hazard, Inspection Policy, and Food Safety," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 87(1), pages 15-27.
    2. Hajji, Adnene & Gharbi, Ali & Kenne, Jean-Pierre & Pellerin, Robert, 2011. "Production control and replenishment strategy with multiple suppliers," European Journal of Operational Research, Elsevier, vol. 208(1), pages 67-74, January.
    3. Muhammad Al-Salamah, 2011. "Economic order quantity with imperfect quality, destructive testing acceptance sampling and inspection errors," Advances in Management and Applied Economics, SCIENPRESS Ltd, vol. 1(2), pages 1-3.
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    5. Rivera-Gómez, Héctor & Gharbi, Ali & Kenné, Jean Pierre, 2013. "Joint production and major maintenance planning policy of a manufacturing system with deteriorating quality," International Journal of Production Economics, Elsevier, vol. 146(2), pages 575-587.
    6. Bouslah, Bassem & Gharbi, Ali & Pellerin, Robert, 2013. "Joint optimal lot sizing and production control policy in an unreliable and imperfect manufacturing system," International Journal of Production Economics, Elsevier, vol. 144(1), pages 143-156.
    7. Pellerin, Robert & Sadr, Javad & Gharbi, Ali & Malhamé, Roland, 2009. "A production rate control policy for stochastic repair and remanufacturing systems," International Journal of Production Economics, Elsevier, vol. 121(1), pages 39-48, September.
    8. Sajadieh, Mohsen S. & Fallahnezhad, Mohammad Saber & Khosravi, Maryam, 2013. "A joint optimal policy for a multiple-suppliers multiple-manufacturers multiple-retailers system," International Journal of Production Economics, Elsevier, vol. 146(2), pages 738-744.
    9. Lavoie, P. & Gharbi, A. & Kenné, J.-P., 2010. "A comparative study of pull control mechanisms for unreliable homogenous transfer lines," International Journal of Production Economics, Elsevier, vol. 124(1), pages 241-251, March.
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    Cited by:

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    2. Bandaly, Dia & Satir, Ahmet & Shanker, Latha, 2016. "Impact of lead time variability in supply chain risk management," International Journal of Production Economics, Elsevier, vol. 180(C), pages 88-100.
    3. Hlioui, Rached & Gharbi, Ali & Hajji, Adnène, 2017. "Joint supplier selection, production and replenishment of an unreliable manufacturing-oriented supply chain," International Journal of Production Economics, Elsevier, vol. 187(C), pages 53-67.
    4. Taleizadeh, Ata Allah & Khanbaglo, Mahboobeh Perak Sari & Cárdenas-Barrón, Leopoldo Eduardo, 2016. "An EOQ inventory model with partial backordering and reparation of imperfect products," International Journal of Production Economics, Elsevier, vol. 182(C), pages 418-434.

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