Purpose: The purpose of this paper is to propose an economic production quantity (EPQ) inventory model considering imperfect items and probabilistic demand for a two-echelon supply chain. The production process is imperfect and the imperfect quality items are removed from the lot size. The...

This paper investigates the issue of channel coordination for a two echelon supply chain consisting of one manufacturer and one retailer. In this supply chain, the demand is sensitive to promotional efforts/sales teams׳ initiatives. A production-inventory model is developed that considers the...