Abstract:In the classical economic order quantity (EOQ) models, a common unrealistic assumption is that all the items received are of good quality. However, in realistic environment, a received shipment usually contains a fraction of imperfect quality items. These imperfect items may be scrapped, reworked at a cost, or salvaged at a discounted price. While the percentage of imperfect items is random, the optimal ordering cycle is rarely considered in current literatures. This paper revisits the model (Maddah and Jaber,… Show more
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