A model of an integrated manufacturer-retailer supply chain is discussed in this study. The suggested study looks into a continuous review production-inventory model that includes setup cost savings, a backorder price discount, and process quality investment. To raise the process quality, an investment function is employed. The lead time demand’s probability distribution serves as the foundation for the model’s construction. Demand for lead times follows a normal distribution. By taking quality improvement into account, our model seeks to lower the overall system cost. To minimize the joint total estimated cost for the producer and retailer, an algorithm is developed. The model is then demonstrated using some numerical examples.
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