This paper investigates optimal replenishment lot size and optimal number of shipments for economic production quantity (EPQ) model with rework process using an algebraic approach. The classic EPQ model assumes a perfect quality production for all items produced and a continuous issuing policy for satisfying customer"s demand. However, in a real life vendor-buyer integrated-production-inventory system, a multidelivery policy is commonly used in lieu of a continuous issuing policy and generation of defective items during a production run seems to be inevitable. A recent published work examined such an identical problem using mathematical modeling and differential calculus to derive the optimal replenishment lot size and optimal number of deliveries that minimizes overall production-inventory-shipment costs. This paper proposes a straightforward algebraic approach to replace the use of calculus on the cost function for determining optimal production-shipment policies. It also presents a simpler form for calculating the long-run average cost for such an imperfect EPQ problem.
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