Original scientific paper
An easy approach to derive EOQ and EPQ models with shortage and defective items
Hsin-Fan Chen
; Department of Marketing and Logistics Management, Chaoyang University of Technology, 168, Jifong East Road, Wufong, Taichung 41349, TAIWAN
Yung-Fu Huang
; Department of Marketing and Logistics Management, Chaoyang University of Technology, 168, Jifong East Road, Wufong, Taichung 41349, TAIWAN
Yu-Cheng Tu
; Department of Marketing and Logistics Management, Chaoyang University of Technology, 168, Jifong East Road, Wufong, Taichung 41349, TAIWAN
Ming-Hon Hwang
; Department of Marketing and Logistics Management, Chaoyang University of Technology, 168, Jifong East Road, Wufong, Taichung 41349, TAIWAN
Abstract
Huang [Journal of Statistics and Management Systems, Vol. 6, No. 2, pp. 171-180, 2003.] studied the EOQ (Economic Order Quantity) and EPQ (Economic Production Quantity) models with backlogging and defective
items using the algebraic approach. He assumed that a 100% inspection policy and the known proportion of defective items was removed after the screening process prior to storage or use. In this paper, we will offer another simple approach to find both the optimal lot size and backorder level under the minimized total relevant cost per unit time.
Keywords
arithmetic-geometric mean inequality approach; algebraic approach; EOQ; EPQ; shortage; defective item
Hrčak ID:
185010
URI
Publication date:
31.1.2012.
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