Preliminary communication

A note on joint determination of the rotation cycle time and number of shipments for a multiitem EPQ model with a random defective rate

Singa Wang Chiu ; Department of Business Administration, Chaoyang University of Technology, Gifong East Road, Wufong, Taichung 413, TAIWAN
Peng-Cheng Sung ; Department of Industrial Engineering & Management, Chaoyang University of Technology, Gifong East Road, Wufong, Taichung 413, TAIWAN
Huei-Hsin Chang ; Department of Finance, Chaoyang University of Technology, Gifong East Road, Wufong, Taichung 413, TAIWAN

Abstract

This study proposes a two-phase, algebraic approach to resolve the rotation cycle time and number of shipments for a multi-item, economic production quantity (EPQ) model with a random defective rate. A conventional method for solving a multi-item EPQ model is to use differential calculus and Hessian matrix equations on system cost function to prove convexity first and then derive an optimal production-shipment policy [1], whereas the proposed approach obtains the optimal operating policy in a simplified, two-phase algebraic way, using neither differential calculus nor Hessian matrix equations. The simplification enables managing practitioners to effectively determine real-life, vendor-buyer integrated multi-item EPQ systems.

Keywords

optimization; production-shipment policy; multi-item EPQ model; vendor-buyer; integrated system; algebraic approach

Hrčak ID:

169843

URI

https://hrcak.srce.hr/169843

Publication date:

21.7.2016.

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