An optimal policy for a single-vendor single-buyer integrated production-distribution model with both deteriorating and defective items

This article develops an integrated production-distribution model to determine an optimal policy with both deteriorating and defective items under a single-vendor single-buyer system. Deterioration is regarded as an inevitable and ingrained characteristic of items. On the other hand, the imperfect quality problem represented with defective items can be considered as outcomes of a not well managed manufacturing and production process. The objective of this article is to maximize the supply chain profit and to find the optimal numbers of delivery after incorporating deterioration and defectiveness into one model. Numerical examples and sensitivity analyses are provided to illustrate the proposed model.