Economic production quantity model for items with imperfect quality

Salameh, Moueen K.; Jaber, Mohamad Y.

doi:10.1016/s0925-5273(99)00044-4

Cited by 877 publications

(777 citation statements)

References 15 publications

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“…Jaber [6] extended the traditional EPQ/EOQ model for the imperfect quality items. They also considered that the imperfect -quality items are sold at a discounted price as a single batch by the end of the screening process.…”

Section: Introductionmentioning

confidence: 99%

Ordering Policy for Imperfect Quality Itemsets Using Cross Selling Effects

Mittal¹,

Singh²,

Aggarwal³

et al. 2014

IJMO

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Abstract-In an EOQ model all items are treated individually and their dependence on each other is not considered. But practically, the sale of one item could affect the sale of other items too. Thus, when the cross selling effects are considered, the frequent itemsets should be treated as an individual item and their economic order quantity (EOQ) should be estimated accordingly. Moreover, cross selling effects becomes more prominent when items are defective in nature. In this paper, we have estimated EOQ of imperfect quality items while considering cross selling effects. First, we have applied data mining techniques to find the relation between itemsets. Second, we applied the calculated cross selling effect to estimate the EOQ. Results have been validated with the help of numerical example.

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Section: Introductionmentioning

confidence: 99%

Ordering Policy for Imperfect Quality Itemsets Using Cross Selling Effects

Mittal¹,

Singh²,

Aggarwal³

et al. 2014

IJMO

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“…By considering this fact, researchers devoted a great amount of effort to develop EPQ/EOQ models for defective items (Porteus [1], Rosenblatt and Lee [2], Lee and Rosenblatt [3], Schwaller [4], Zhang and Gerchak [5]). In 2000, Salameh and Jaber [6] extended the traditional EPQ/EOQ model for the imperfect quality items. They also considered that the imperfect -quality items are sold at a discounted price as a single batch by the end of the screening process.…”

Section: Introductionmentioning

confidence: 99%

“…They also considered that the imperfect -quality items are sold at a discounted price as a single batch by the end of the screening process. Cá rdenasBarrón [7] corrected the optimum order size formula obtained by Salameh and Jaber [6] by adding constant parameter which was missing in their optimum order size formula. Further, Goyal and Cá rdenas-Barrón [8] presented a simple approach for determining economic production quantity for imperfect quality items and compare the results based on the simple approach with optimal method suggested by Salameh and Jaber [6].…”

Section: Introductionmentioning

confidence: 99%

“…Cá rdenasBarrón [7] corrected the optimum order size formula obtained by Salameh and Jaber [6] by adding constant parameter which was missing in their optimum order size formula. Further, Goyal and Cá rdenas-Barrón [8] presented a simple approach for determining economic production quantity for imperfect quality items and compare the results based on the simple approach with optimal method suggested by Salameh and Jaber [6]. Papachristos and Konstantaras [9] examined the Salameh and Jaber [6] paper closely and rectify the proposed conditions to ensure that shortages will not occur.…”

Section: Introductionmentioning

confidence: 99%

“…Further, Goyal and Cá rdenas-Barrón [8] presented a simple approach for determining economic production quantity for imperfect quality items and compare the results based on the simple approach with optimal method suggested by Salameh and Jaber [6]. Papachristos and Konstantaras [9] examined the Salameh and Jaber [6] paper closely and rectify the proposed conditions to ensure that shortages will not occur. They extended their model to the case in which withdrawing takes place at the end of the planning horizon.…”

Section: Introductionmentioning

confidence: 99%

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Credit Financing in Economic Ordering Policies for Defective Items with Order Overlapping

Jaggi¹,

Mittal²,

Gulia³

et al. 2014

IJMO

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Abstract-In the classical inventory models, most of the time the issue of quality of the items has not been given due attention. However, in realistic environment, it can be observed that there may be some defective items in an ordered lot, because of these defective items retailer may incurs additional cost due to rejection, repair and refund etc. Thus, inspection/screening of lot becomes essential in most of the organizations. Shortages may occur due to defective items, which can be prevented by placing an order at the time when the inventory level is good enough to meet the demand during the screening process. Further, it is generally assumed that payment will be made to the supplier for the goods immediately after receiving the consignment. Whereas, in practice, supplier does offers a certain fixed period to the retailer for settling the account. During this period, supplier charges no interest, but beyond this period interest is being charged as has been agreed upon. On the other hand, retailer can earn interest on the revenue generated during this period. Keeping this scenario in mind, an attempt has been made to formulate an inventory model for imperfect quality items under the condition of permissible delay in payments. Results have been validated with the help of a numerical example. Comprehensive sensitivity analysis has also been presented.

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Optimal replenishment policy for imperfect quality EMQ model with rework and backlogging

Chiu

2006

Appl Stoch Models Bus & Ind

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This paper derives the optimal replenishment policy for imperfect quality economic manufacturing quantity (EMQ) model with rework and backlogging. The classic EMQ model assumes that all items produced are of perfect quality. However, in real-life manufacturing settings, generation of imperfect quality items is almost inevitable. In this study, a random defective rate is assumed. All items produced are inspected and the defective items are classified as scrap and repairable. A rework process is involved in each production run when regular manufacturing process ends, and a rate of failure in repair is also assumed. Unit disposal cost and unit repairing and holding costs are included in our mathematical modelling and analysis. The renewal reward theorem is employed in this study to cope with the variable cycle length. The optimal replenishment policy in terms of lot-size and backlogging level that minimizes expected overall costs for the proposed imperfect quality EMQ model is derived. Special cases of the model are identified and discussed. Numerical example is provided to demonstrate its practical usage. today [2][3][4]. A noticeable amount of research has since been accomplished to enhance the classic EOQ model by addressing its unrealistic assumptions [5][6][7][8]. In manufacturing sector, for items that are produced in-house the economic manufacturing quantity (EMQ) model is often used to determine the optimal lot-size that minimizes total production-inventory costs. The classic EMQ model implicitly assumes that items produced are of perfect quality. However, in real-life situations, due to process deterioration or other factors, generation of defective items is inevitable. Therefore, a considerable amount of research has been carried out to enhance the classic EMQ model by addressing issues of imperfect quality items (see, for example, Rosenblatt and Lee [9], Lee and Rosenblatt [10], Schwaller [11], Zhang and Gerchak [12], and others [13][14][15][16][17][18][19]).The non-conforming items generally fall into two groups: the repairable and the scrap (the latter are discarded). The reworking of the repairable defective items can be initiated as soon as the regular production stops in the same production cycle. Certainly, by adopting rework there will be extra costs for repairing and holding that are proportional to number of items reworked; however, the overall production-inventory costs can be reduced once defective items are repaired. For instance, manufacturing processes in plastic goods in the plastic injection moulding process, the printed circuit board assembly (PCBA), in the PCBA manufacturing, and production process in other industries, such as chemicals, textiles, metal components, etc. sometimes employ rework as an acceptable process in terms of level of quality. Examples of articles that address the imperfect quality production system with rework are surveyed below. Liu and Yang [20] derived an average long-term profit function based on a simple control policy which allows the work centre to load one b...

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Economic production quantity model for items with imperfect quality

Cited by 877 publications

References 15 publications

Ordering Policy for Imperfect Quality Itemsets Using Cross Selling Effects

Ordering Policy for Imperfect Quality Itemsets Using Cross Selling Effects

Credit Financing in Economic Ordering Policies for Defective Items with Order Overlapping

Optimal replenishment policy for imperfect quality EMQ model with rework and backlogging

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