Modified Ordering Policy of an Eoq Model With Allowable Proportionate Discount for Imperfect Products Using Cross Selling Effects and Datamining Techniques

Abstract

The goal of this work is to provide an Economic Order Quantity (EOQ) model with allowable proportionate discount of imperfect quality items and cross selling effects. We first developed the ordering policy in this study by introducing cross-selling impact. Under the cross-selling effects, the frequent item sets are considered as individual entities and their corresponding EOQ can be computed further with. Moreover, when items are defective in nature the cross-selling effects remain more prominent. To establish the desired relationship among the item sets, different data mining techniques are explored initially. The work progresses further with the application of the cross-selling effects to estimate the EOQ. The work conducts a 100% screening of lot, as each lot assumed to have a fraction of imperfection. Then after variable discounts allowed for the imperfect items to find total profit. Finally, numerical analysis with a few examples is given to experience the outcomes of presented model.