Abstract
Article history: Received 25 February 2012 Accepted March 23 2012 Available online 24 March 2012 In a previously published paper by Khan et al. (2011) [Khan, M., Jaber, M.Y., & Bonney M. (2011). An economic order quantity (EOQ) for items with imperfect quality and inspection errors, International Journal of Production Economics, 133, 113-118], we found that there is a contradiction between the cycle length and the holding cost per cycle. To obtain the cycle length, the authors assumed that the returned items from the market were replaced with good quality items. However, for the holding cost per cycle, the authors implicitly assumed that the returned items were not replaced by good quality items. In this note, we first point out the contradiction. Then we fix this flaw and develop a corrected EOQ. © 2012 Growing Science Ltd. All rights reserved
Highlights
A Khan et al (2011) proposed an inventory model with imperfect processes and inspection errors
The revenue function derived in their article is unrealistic, and this commenting paper further offers corrections to complement the shortcomings
The following notation is used throughout this comment (Please refer to Khan et al.’s (2011) article)
Summary
A Khan et al (2011) proposed an inventory model with imperfect processes and inspection errors. Hsu (2012) found a contradiction in Khan’ paper between the cycle length and the holding cost per cycle, fixed this flaw and develop a corrected EOQ. There are still some queries to be discussed This commenting paper points out three queries in Khan et al.’s (2011) article that need to be re-examined. The revenue function derived in their article is unrealistic, and this commenting paper further offers corrections to complement the shortcomings. The following notation is used throughout this comment (Please refer to Khan et al.’s (2011) article). In Khan et al (2011), the authors established the total profit per cycle to be written as follows: Total profit per cycle TP(y) = total revenue per cycle - total cost per cycle = (the revenue from selling the good items + the revenue from selling the classified defective items)-(the procurement cost per cycle+ the screening cost per cycle + the holding cost per cycle). The total revenue per cycle is [sy(1-p)(1-m1)+sypm2 ]+[ vy(1-p)m1+ vyp(1-m2)+vypm2]
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