The Impact of Nonconforming Items on Inventory Systems

• TAKEMOTO Yasuhiko

  Prefectural Univeristy of Hiroshima

• ARIZONO Ikuo

  Osaka Prefecture University

Bibliographic Information

Other Title

• 不適合品による不確実性の在庫システムへの影響
• フテキゴウヒン ニ ヨル フカクジツセイ ノ ザイコ システム エ ノ エイキョウ

Abstract

The goal of inventory management is to decide the timing and quantity of ordering in response to various kinds of uncertainty. The failure of manufacturing machines, shortage of materials, and overworking may prevent manufacturers from achieving the planned quantity of items. Additionally, some nonconforming items may be included in the replenishment to retailers as a result of imperfect production and inspection by manufacturers and damage during transport. Consequently, the planned quantity of items may not be supplied to retailers. The uncertainty about production should be considered in the decision-making of inventory management. In this article, we consider the impact of nonconforming items on the following traditional inventory systems: continuous review and periodic review. In particular, we investigate how the inclusion of nonconforming items has an influence on inventory policies and operating costs. Then, the difference of influence between both systems is discussed.

Journal

• Journal of Japan Industrial Management Association

  Journal of Japan Industrial Management Association 60 (5), 249-258, 2009

  Japan Industrial Management Association

Keywords

• nonconforming items
• continuous review (r, Q) model
• periodic review order-up-to S model

Details

• CRID: 1390001205504690944
• NII Article ID: 110007581039
• NII Book ID: AN10561806
• DOI: 10.11221/jima.60.249
• ISSN: 21879079
• ISSN: 13422618
• NDL BIB ID: 10529582
• Web Site: https://ndlsearch.ndl.go.jp/books/R000000004-I10529582
• Text Lang: ja
• Data Source:
  • JaLC
  • NDL
  • CiNii Articles
  • KAKEN
  • Crossref
• Abstract License Flag: Disallowed