Research on EPQ Model Based on Random Defective Rate

Zheng YANG, Huifang JIAO

Abstract


In the real economic life, it is inevitable that a lot of phenomena will happen, such as damage in transportation and machine failure, which may generate a certain percentage of defective products in the process of logistics and production. Especially in the production process, the stoppage on the production line often brings about defective products. To provide mathematical models that more closely conform to actual inventories and respond to the factors that contribute to inventory costs, based on the classical EPQ model, this paper develops an EPQ model for defective items with a certain price relative to the defective level. And this paper also considers the issue that defective items are sold at a lower price which depends on the degree of product defects. A mathematical model is developed and numerical examples are provided to illustrate the solution procedure. The research will enrich researches and it has important practical significance.

Keywords


EPQ/EOQ; Imperfect quality; Defectives

Full Text:

PDF

References


Chang, H. C. (2004). An application of fuzzy sets theory to the EOQ model with imperfect quality items. Computers and Operations Research, 2004, 31(12), 2079-2092.

Chang, H. C., & Ho, C. H. (2010). Exact closed-form solutions for “optimal inventory model for items with imperfect quality and shortage backordering”. Omega, 38, 233-237.

Cheng, T. C. E. (1991). An economic order quantity model with demand-dependent unit production cost and imperfect production process. IIE Transactions, 23(1), 23-28.

Chiu, Y. P. (2003). Determining the optimal lot size for the finite production model with random defective rate, the rework process, and backlogging. Engineering Optimization, 35 (4), 427-437.

Chung, K. J., & Hou, K. L. (2003). An optimal production run time with imperfect production processes and allowable shortages. Computers and Operations Research, 30, 483-490.

Eroglu, A., & Ozdemir, G. (2007). An economic order quantity model with defective items and shortages. International Journal of Productions Economics, 106, 544-549.

Goyal, S. K., & Cardenas-Barron, L. E. (2002). Note on: Economic production quantity model for items with imperfect quality—A practical approach. International Journal of Production Economics, 2002, 77(1), 85-87.

Goyal, S. K., Huang, C. K., & Chen, H. K. (2003). A simple integrated production policy of an imperfect item for vendor and buyer. Production Planning & Control, 2003, 14(7), 596-602.

Hayek, P. A., & Salameh, M. K. (2001). Production lot sizing with the reworking of imperfect quality items produced. Production Planning and Control, 12(6), 584-590.

Kim, C. H., & Hong, Y. (1999). An optimal run length in deteriorating production process. International Journal of Production Economics, 58 (2), 183-189.

Maddah, B., et al. (2010). Order overlapping: A practical approach for preventing shortages during screening. Computers & Industrial Engineering, 58(4), 691-695

Maddah, B., & Jaber, M. Y. (2008). Economic order quantity for items with imperfect quality: Revisited. International Journal of Production Economics, 112(2), 808-815.

Papachristos, S., & Konstantaras, I. (2006). Economic ordering quantity models for items with imperfect quality. International Journal of Production Economics, 100(1), 148-154.

Porteus, E. (1986). Optimal lot sizing, process quality improvement and setup cost reduction. Operations Research, 34(1), 37-144.

Rosenblatt, M. J., & Lee, H. L. (1986). Economic production cycles with imperfect production processes. IIE Transactions, 8(1), 18–55.

Salameh, M. K., & Jaber, M. Y. (2000). Economic production quantity model for items with imperfect quality. International Journal of Production Economics, 64(1), 59-64.

Schwaller, R. L. (1998). EOQ under inspection costs. Production and Inventory Management, 29(3), 22.

Shih, W. (1980). Optimal inventory policies when stock outs result from defective products. International Journal of Production Research, 18(6), 677-686.

Wee, H. M., Yu, J., & Chen, M. C. (2007). Optimal inventory model for items with imperfect quality and shortage backordering. Omega, 35(1), 7-11.

Zhang, X., & Gerchak, Y. (1990). Joint lot sizing and inspection policy in an EOQ model with random yield. IIE Transaction, 22(1), 41.




DOI: http://dx.doi.org/10.3968/4457

Refbacks

  • There are currently no refbacks.


Copyright (c)



Share us to:   

Reminder

  • How to do online submission to another Journal?
  • If you have already registered in Journal A, then how can you submit another article to Journal B? It takes two steps to make it happen:

1. Register yourself in Journal B as an Author

  • Find the journal you want to submit to in CATEGORIES, click on “VIEW JOURNAL”, “Online Submissions”, “GO TO LOGIN” and “Edit My Profile”. Check “Author” on the “Edit Profile” page, then “Save”.

2. Submission

  • Go to “User Home”, and click on “Author” under the name of Journal B. You may start a New Submission by clicking on “CLICK HERE”.


We only use three mailboxes as follows to deal with issues about paper acceptance, payment and submission of electronic versions of our journals to databases:
caooc@hotmail.com; mse@cscanada.net; mse@cscanada.org

 Articles published in Management Science and Engineering are licensed under Creative Commons Attribution 4.0 (CC-BY).

 MANAGEMENT SCIENCE AND ENGINEERING Editorial Office

Address:1055 Rue Lucien-L'Allier, Unit #772, Montreal, QC H3G 3C4, Canada.

Telephone: 1-514-558 6138
Http://www.cscanada.net Http://www.cscanada.org

Copyright © 2010 Canadian Research & Development Centre of Sciences and Cultures