Research Article Open Access

Applying a Just-in-Time Integrated Supply Chain Model with Inventory and Waste Reduction Considerations

Li-Hsing Ho1 and Wei-Feng Kao2
  • 1 Department of Technology Management, Taiwan
  • 2 Ph.D. Program of Technology Management, Chung Hua University, 707, Sec.2, WuFu Rd., Hsinchu, 30012, R.O.C, Taiwan

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.

American Journal of Applied Sciences
Volume 10 No. 7, 2013, 751-759

DOI: https://doi.org/10.3844/ajassp.2013.751.759

Submitted On: 12 May 2013 Published On: 4 July 2013

How to Cite: Ho, L. & Kao, W. (2013). Applying a Just-in-Time Integrated Supply Chain Model with Inventory and Waste Reduction Considerations. American Journal of Applied Sciences, 10(7), 751-759. https://doi.org/10.3844/ajassp.2013.751.759

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Keywords

  • Supply Chain
  • Just-In-Time
  • Quality Assurance
  • Integrated Model