Simulation study of a basic integrated inventory problem with quality improvement and lead time reduction

In this paper, we investigate the trade-off between investing in product quality improvement and lead time reduction in a B2B single-supplier, single-buyer environment. To this end, a discrete event simulation model is proposed, based on the integrated inventory model defined in Ouyang et al. (2006). Furthermore, the possibility of using alternative failure mechanisms and capital investment functions are studied. ity of using alternative failure mechanisms and capital investment functions are studied