Applying a Just-in-Time Integrated Supply Chain Model with Inventory and Waste Reduction Considerations

Just-In-Time (JIT) has been playing an important role in supply chain environments. Countless firms have been applying JIT in production to gain and maintain a competitive advantage. This study introduces an innovative model which integrates inventory and quality assurance in a JIT supply chain. This approach assumes that manufacturing will produce some defective items and those products will not influence the buyer’s purchase policy. The vendor absorbs all the inspection costs. Using a function to compute the expected amount of total cost every year will minimize the total cost and the nonconforming fraction. Finally, a numerical example further confirms this model.