American Journal of Applied Sciences

APPLYING A JUST-IN-TIME INTEGRATED SUPPLY CHAIN MODEL WITH INVENTORY AND WASTE REDUCTION CONSIDERATIONS

Li-Hsing Ho and Wei-Feng Kao

DOI : 10.3844/ajassp.2013.751.759

American Journal of Applied Sciences

Volume 10, Issue 7

Pages 751-759

Abstract

Just-In-Time (JIT) has been playing an important role in supply chain environments. Countless firms have been applying JIT in production to gain and maintain a competitive advantage. This study introduces an innovative model which integrates inventory and quality assurance in a JIT supply chain. This approach assumes that manufacturing will produce some defective items and those products will not influence the buyer’s purchase policy. The vendor absorbs all the inspection costs. Using a function to compute the expected amount of total cost every year will minimize the total cost and the nonconforming fraction. Finally, a numerical example further confirms this model.

Copyright

© 2013 Li-Hsing Ho and Wei-Feng Kao. This is an open access article distributed under the terms of the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited.