Reexamination of “Combining an alternative multi-delivery policy into economic production lot size problem with partial rework” Using an Alternative Approach

Abstract

A conventional approach for solving an economic production quantity (EPQ) model with multi-delivery policy andquality assurance is to use mathematical modeling for deriving the system cost function and to employ differentialcalculus for proving convexity of the cost function before determining the optimal operating policy. This paperpresents a simplified solution procedure to reexamine a specific EPQ model [1] and demonstrates that both, theoptimal manufacturing lot size and the long-run cost function can be derived without derivatives. The proposedapproach may enable practitioners—with little knowledge of calculus—to understand such a real life vendor-buyerintegrated system with ease.