EOQ model for imperfect quality items with partial backorders and screening constraint

Abstract

This paper develops an EOQ model for imperfect quality items with partial backorders and screening constraint. The well-known renewal reward theory is applied to derive the expected total profit per unit time. Using the transformed time intervals as decision variables instead of the order size and the backorder quantity, a closed-form optimal solution is derived. Finally, the generality of the proposed inventory model (conforming to the classical EOQ model) is illustrated when some parameter values in the equations are sufficiently large or small. [Received 8 January 2014; Revised 25 June 2014; Accepted 6 August 2014]