Open AccessEconomic production quantity model with backorders and items with imperfect/perfect quality options
Author(s) -
Behrouz Afshar Nadjafi,
Hamed Pourbakhsh,
Mohammad Mirhabibi,
Hasan Khodaei,
Babak Ghodami,
Fahimeh Sadighi,
Soheil Azizi
Publication year - 2019
Publication title -
journal of applied research and technology
Language(s) - English
Resource type - Journals
ISSN - 2448-6736
DOI - 10.22201/icat.16656423.2019.17.4.794
Subject(s) - imperfect , production (economics) , economic production quantity , quality (philosophy) , sensitivity (control systems) , fraction (chemistry) , economics , process (computing) , computer science , unit (ring theory) , perfect information , econometrics , mathematical economics , mathematical optimization , mathematics , operations research , microeconomics , engineering , philosophy , linguistics , chemistry , mathematics education , organic chemistry , epistemology , electronic engineering , operating system
In this paper, an economic production quantity (EPQ) model with backorders considering two options for replenishing of items is proposed; with partially imperfect and perfect quality items. First option assumes a produced shipment contains a fraction of imperfect quality items and supplier does not conduct a full inspection. Therefore, these items are detected by a fully perfect screening process by buyer and are sold as a single batch at a discounted price. While the second one assumes that all items that are produced are fully inspected by supplier and all delivered items are perfect; of course with higher unit production price. Ordering size and backordering level are used as decision variables to derive the closed-form optimal solution. The proposed model is ilustrated and discussed by a numerical example. Finally, a sensitivity analysis is done for identifying the impact of crucial parameters on the optimal solution.