Effect of Human Errors on an Inventory Model Under Two Warehouse Environments

Abstract

Background: The surety of production of all the goods in the standard inventory model to be of good quality comes out to be an impractical assumption. Though, the observation in the practical environment shows the possibility of occurrence of errors in the controlled batch. The collection of these items is generally done at the time of the process of selection and selling is done in a single batch when the process of selection ends. Consideration of human errors of Type I and Type II , in this model, is done when the inspector shows tiredness and ignorance at the time of the process of inspection. Objective: The objective of this article is to carry out the evaluation of the storage value and inventory decision, which results in higher profit. In this paper, the effect of human errors has been considered under the two-warehouse environments. Methods: It is also assumed that the cost of a stock rent warehouse is greater than own warehouse because of the better preservation facilities in RW. The validation of results has been done by utilizing numerical based examples. The sensitivity analysis has also been presented. Result & Conclusion: As per the results, it is clear that as the percentage of error increases, the expected total profit decreases with respect to time.