Abstract
The economic ordering quantity (EOQ) model has been widely applied to inventory management. However, some assumptions in the model are unrealistic in practice. One of the assumptions is that all produced units are of good quality. This article deals with an EOQ model for products with imperfect quality under an announced price increase, where the defectives are screened out by a 100% inspection process, and which can be sold as a single batch at the end of the inspection process. The optimal ordering policies associated with three kinds of effective times of the price increase are obtained. A numerical example is then provided to illustrate the proposed model. Besides, based on the numerical example, the effects of some important parameters on the optimal order quantity and the corresponding saving in cost are also investigated.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callMore From: Journal of the Chinese Institute of Industrial Engineers
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
