Abstract
In this paper, we consider an Economic Order Quantity (EOQ) model with imperfect quality items. The items undergo quality screening for which both the cost and the defect detection rate depend on the time spent on this operation. We consider various functional forms for the screening cost and the defect detection functions. In particular, nonlinear forms lead to nonconvexities in the total cost function. We solve the model analytically for a selected set of assumptions and provide discussion and managerial implications.
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