×

Economic ordering policy for an item with imperfect quality subject to the in-house inspection. (English) Zbl 1148.90302

Summary: This article considers a production/inventory system where each lot of items received or produced contains a random proportion of defective units, items of imperfect quality. The purchaser contacts a 100% inspection in order to identify the perfect (acceptable) quality items. The model examines the following two options for the imperfect quality items: sell them to a secondary market, as a single batch and at a price lower to that of new ones, or rework them at some cost and then use them as new ones to satisfy demand. After inspection, the good quality items are sent to the working inventory warehouse in batches of equal size. For both of these cases, the optimal ordering lot size and the optimal number of batches are obtained. A numerical example illustrates the solution procedure and sensitivity analysis results are reported.

MSC:

90B05 Inventory, storage, reservoirs
90B25 Reliability, availability, maintenance, inspection in operations research
PDFBibTeX XMLCite
Full Text: DOI

References:

[1] DOI: 10.1080/09537280310001626179
[2] DOI: 10.1080/07408179108963838
[3] DOI: 10.1016/S0925-5273(01)00203-1
[4] DOI: 10.1080/095372801750397707
[5] DOI: 10.1287/mnsc.33.9.1125 · Zbl 0628.90032
[6] DOI: 10.1016/0377-2217(94)00339-4 · Zbl 0924.90085
[7] DOI: 10.1016/j.ijpe.2004.11.004
[8] DOI: 10.1287/opre.34.1.137 · Zbl 0591.90043
[9] DOI: 10.1080/07408178608975329
[10] DOI: 10.1016/S0925-5273(99)00044-4
[11] Schwaller R, Prod. Invent. Manage. 29 pp 22– (1988)
[12] Suntag C, Inspection and Inspection Quality Management (1993)
[13] DOI: 10.1016/j.ijpe.2003.11.012
[14] DOI: 10.1016/S0305-0548(00)00030-7 · Zbl 0985.90007
[15] DOI: 10.1080/07408179008964156
[16] Zipkin HP, Foundations of Inventory Management (2000)
This reference list is based on information provided by the publisher or from digital mathematics libraries. Its items are heuristically matched to zbMATH identifiers and may contain data conversion errors. In some cases that data have been complemented/enhanced by data from zbMATH Open. This attempts to reflect the references listed in the original paper as accurately as possible without claiming completeness or a perfect matching.