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Advances in Decision Sciences
Volume 2013 (2013), Article ID 915675, 10 pages
http://dx.doi.org/10.1155/2013/915675
Research Article

Imperfect Production System under Reverse Logistics in Stock-Out Situation: EPQ Model

1Department of Science & Humanities, SRM University, Delhi-NCR Campus, Ghaziabad, Uttar Pradesh 201204, India
2Centre for Mathematical Sciences, Banasthali University, Banasthali, Rajasthan 304022, India

Received 31 July 2013; Accepted 10 October 2013

Academic Editor: Shelton Peiris

Copyright © 2013 Himani Dem and Leena Prasher. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

Abstract

This paper derives a reverse logistic inventory model with imperfect production, stock-dependent demand, flexible manufacturing, and shortages over infinite planning horizon. The objective is to determine the joint policy for optimal production, amount of remanufacturing, collection of reusable items, and collection as well as disposal of defective items which minimizes the total cost of the inventory system under consideration. To make the model more realistic, both of the cases of linear and nonlinear holding costs have been discussed. The results are discussed with a numerical example to illustrate the theory.