Two-echelon supply chain model with manufacturing quality improvement and setup cost reduction

Biswajit Sarkar, Arunava Majumder, Mitali Sarkar, Bikash Koli Dey, Gargi Roy

Research output: Contribution to journalArticlepeer-review

61 Citations (Scopus)


For quality improvement purposes often times, a manufacturing unit has to change certain parts of equipment. Any such changes in the assembly line manufacturing system or production process involves a cost known as the setup cost. Minimizing the setup cost and improving the product quality is of prime importance in today's competitive business arena. This paper develops the effects of setup cost reduction and quality improvement in a two-echelon supply chain model with deterioration. The objective is to minimize the total cost of the entire supply chain model (SCM) by simultaneously optimizing setup cost, process quality, number of deliveries, and lot size. Numerical examples are provided to illustrate the model.

Original languageEnglish
Pages (from-to)1085-1104
Number of pages20
JournalJournal of Industrial and Management Optimization
Issue number2
Publication statusPublished - 2017 Apr 1

Bibliographical note

Funding Information:
This work was support by the research fund of Hanyang Uni-versity (HY-2016-P) (Project Number 201600000000282).

All Science Journal Classification (ASJC) codes

  • Business and International Management
  • Strategy and Management
  • Control and Optimization
  • Applied Mathematics


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