Sofie Van Volsem
In a recent paper, Ouyang et al. (2006) study a vendor-buyer integrated inventory model with quality-related issues and controllable lead time. It is assumed that the production process is imperfect and can be improved by extra capital investment. Moreover, it is assumed that the lead time is controllable, and reducible by adding additional crash costs. Basically, the trade-off between investing in quality improvement or investing in lead time ...