{"id":10995,"date":"2026-09-05T13:30:57","date_gmt":"2026-09-05T05:30:57","guid":{"rendered":"\/jase\/?post_type=tkuisotope&p=10995"},"modified":"2026-09-15T12:44:43","modified_gmt":"2026-09-15T04:44:43","slug":"optimum-settings-of-process-mean-economic-order-quantity-and-commission-fee","status":"publish","type":"tkuisotope","link":"\/jase\/?tkuisotope=optimum-settings-of-process-mean-economic-order-quantity-and-commission-fee","title":{"rendered":"Optimum Settings of Process Mean, Economic Order Quantity, and Commission Fee"},"content":{"rendered":"\n
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<\/i> 2012<\/a><\/p>\n<\/div>\n\n\n\n

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<\/i> Volume 15, Issue 4<\/a><\/p>\n<\/div>\n\n\n\n

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Chung-Ho Chen1<\/sup><\/i><\/a>, Chao-Yu Chou2<\/sup> and Wei-Chen Lee1<\/sup><\/p>\n\n\n\n

1<\/sup>Graduate Institute of Industrial Management, Southern Taiwan University of Science and Technology, Tainan 710, Taiwan, R.O.C.<\/p>\n\n\n\n

2<\/sup>Department of Finance, National Taichung University of Science and Technology, Taichung, Taiwan, R.O.C.<\/p>\n<\/div>\n\n\n\n

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Received:\u00a0February 20, 2012
Accepted:\u00a0June 26, 2012 Published:\u00a0December 1, 2012<\/p>\n<\/div>\n<\/div>\n\n\n\n

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No figure<\/p>\n<\/div>\n<\/div>\n\n\n\n

<\/i> Copyright <\/strong>The Author(s). This is an open access article distributed under the terms of the Creative Commons Attribution License (CC BY 4.0)<\/a>, which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are cited.<\/p>\n\n\n\n

Download Citation:  BibTeX <\/a>| http:\/\/dx.doi.org\/10.6180\/jase.2012.15.4.04<\/a>  <\/p>\n\n\n\n

Download PDF<\/a><\/p>\n\n\n\n

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In the present paper we modify Chen and Liu’s model by considering both consignment policy and quality loss of products[cite: 4]. Taguchi’s quadratic quality loss function is adopted for evaluating the product quality[cite: 4]. The optimal parameters of manufacturer’s process mean and commission fee and retailer’s economic order quantity are simultaneously determined by maximizing the expected total profit of society[cite: 4]. A comparative study between the modified model and the original Chen and Liu’s model is provided for illustration[cite: 4]. Numerical results show that the selling price per unit and the mean of the demand of customer have major effects on the expected profit of the supply chain system[cite: 4].<\/p>\n\n\n\n

Keywords: Economic Order Quantity, Commission Fee, Taguchi’s Quadratic Quality Loss Function, Process Mean, Consignment Policy<\/em>[cite: 4]<\/p>\n\n\n\n

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  1. [1] Seifert, R. W., Thonemann, U. W. and Hausman, W. H., “Optimal Procurement Strategies for Online Spot Markets,” European Journal of Operational Research, Vol. 152, pp. 781-799 (2004).<\/li>\n
  2. [2] Haksoz, C. and Seshadri, S., “Supply Chain Operations in the Presence of a Spot Market: A Review with Discussion,” Journal of the Operational Research Society, Vol. 58, pp. 1412-1429 (2007).<\/li>\n
  3. [3] Chen, S. L. and Liu, C. L., “Procurement Strategies in the Presence of the Spot Market An Analytical Framework,” Production Planning & Control, Vol. 18, pp. 297-309 (2007).<\/li>\n
  4. [4] Chen, S. L. and Liu, C. L., “The Optimal Consignment Policy for the Manufacturer under Supply Chain Coordination,” International Journal of Production Research, Vol. 46, pp. 5121-5143 (2008).<\/li>\n
  5. [5] Li, J. and Liu, L., “Supply Chain Coordination with Manufacturer’s Limited Reserve Capacity: An Extended Newsboy Problem,” International Journal of Production Economics, Vol. 112, pp. 860-868 (2008).<\/li>\n
  6. [6] Chen, S. L. and Huang, S. C., “Managing Supply Chain Risk with Options and Online Spot Markets,” Journal of Statistics & Management Systems, Vol. 13, pp. 389-407 (2010).<\/li>\n
  7. [7] Taguchi, G., Introduction to Quality Engineering, Asian Productivity Organization, Tokyo (1986).<\/li>\n
  8. [8] Chen, C. H., “The Trade-Off Model between Retailer’s and Manufacturer’s Profits,” International Journal of Reliability and Quality Performance, Vol. 2, pp. 21-31 (2010).<\/li>\n<\/ol>\n<\/div>\n\n\n\n

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