Economic production quantity model with imperfect-quality items, two-way imperfect inspection and sales return

نویسندگان

  • Seung Ho Yoo
  • DaeSoo Kim
  • Myung-Sub Park
چکیده

In practices, not only production but inspection processes are often not perfect, thereby generating defects and inspection errors. Previous imperfect-quality inventory studies, however, have mostly focused on developing cost-minimizing models that do not consider imperfect inspection processes and related defect sales return issues despite their practical significance. Thus, this study proposes a profit-maximizing economic production quantity model that incorporates both imperfect production quality and two-way imperfect inspection, i.e., Type I inspection error of falsely screening out a proportion of non-defects and disposing of them like defects and Type II inspection error of falsely not screening out a proportion of defects, thereby passing them on to customers, resulting in defect sales returns. We also consider rework and salvage in disposing of screened and returned items. Then we solve the model optimally and present numerical sensitivity analyses to provide important managerial insights

برای دانلود رایگان متن کامل این مقاله و بیش از 32 میلیون مقاله دیگر ابتدا ثبت نام کنید

ثبت نام

اگر عضو سایت هستید لطفا وارد حساب کاربری خود شوید

منابع مشابه

An Economic Production Quantity Model for Defective Items with Sales Return Service, Scrap Items and Rework

In this model, we establish an inventory model to determine the optimal inventory replenishment scheme for the economic production quantity (EPQ) model for imperfect, deteriorating items with sales return service under multiple production and rework setup. In one cycle, production process can produces the products in m production setups and reworks the defective items in one rework setup. The c...

متن کامل

A cloudy fuzzy economic order quantity model for imperfect-quality items with allowable proportionate discounts

In the traditional economic order quantity/economic production quantity model, most of the items considered are of perfect type. But this situation rarely takes place in practice. Thus, in this paper, an economic order quantity model with imperfectquality items is developed. 100% screening process is performed, and the items of imperfect quality are sold as a single batch. A proportionate ra...

متن کامل

Economic Production Quantity in Reworkable Production Systems with Inspection Errors, Scraps and Backlogging

The classical economic production quantity (EPQ) model is a well-known and commonly used inventory control technique. Common assumptions in this model are that all units produced are of perfect quality and shortage is not allowed, since in practice shortage, non-conforming product or scrap items are possible, these assumptions will underestimate the actual required quantity. The objective of th...

متن کامل

An inventory model for non-instantaneous deteriorating items with imperfect quality, delay in payments and time value money

In this paper, Economic Order Quantity ( ) based model for non-instantaneous deteriorating items with imperfect quality, permissible delay in payments and inflation is proposed. We adopt a time-dependent demand function. Also, the effects of time value of money are studied using the Discounted Cash Flow approach. Moreover, we assume that orders may contain a random proportion of defective items...

متن کامل

Economic order quantity with partial backordering and sampling inspection

To access the efficient inventory system, managers should consider all the situations that have happened in reality. One of these situations is the presence of the defective items in each received lot and the other situation is being the group of customers that do not wait to fulfill their requirements from the vendor and choose another one to get their orders so the proportion of the backorder...

متن کامل

ذخیره در منابع من


  با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید

عنوان ژورنال:

دوره   شماره 

صفحات  -

تاریخ انتشار 2015