Abstract
The military, and many civilian organizations, require that a sufficient supply of materials be in storage at any one time to meet certain emergency needs that may arise. However, the deterioration of these materials in storage may render them unusable. It is therefore essential that a systematic program for the surveillance of such stored items be maintained in order to insure that the supply of usable items is always adequate. This paper investigates the appropriate time for corrective action to compensate for the deteriorating quality of a lot in storage, given the cost of appropriate corrective action and the cost of an imperfect lot when the emergency occurs as functions of the number of defective items in the lot. The critical equation is derived for general cost functions and then for specific cost functions of interest. The assumption made about the lot in storage is that the storage life of each item has a common known exponential distribution; also included is a discussion of how the results can...
Published Version
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 call