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An EOQ model with process reliability considerations

Author

Listed:
  • P K Tripathy

    (Utkal University)

  • W-M Wee

    (Chung Yuan Christian University)

  • P R Majhi

    (Nilachal Institute of Computer Science)

Abstract

The classical economic order quantity (EOQ) model assumes that items produced are of perfect quality and that the unit cost of production is independent of demand. However, in realistic situations, product quality is never perfect, but is directly affected by the reliability of the production process. In this paper, we consider an EOQ model with imperfect production process and the unit production cost is directly related to process reliability and inversely related to the demand rate. In addition, a numerical example is given to illustrate the developed model. Sensitivity analysis is also performed and discussed.

Suggested Citation

  • P K Tripathy & W-M Wee & P R Majhi, 2003. "An EOQ model with process reliability considerations," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 54(5), pages 549-554, May.
    • Handle: RePEc:pal:jorsoc:v:54:y:2003:i:5:d:10.1057_palgrave.jors.2601540
    DOI: 10.1057/palgrave.jors.2601540
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    References listed on IDEAS

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    1. Tapiero, Charles S. & Ritchken, Peter H. & Reisman, Arnold, 1987. "Reliability, pricing and quality control," European Journal of Operational Research, Elsevier, vol. 31(1), pages 37-45, July.
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    5. Cheng, T. C. E., 1989. "An economic production quantity model with flexibility and reliability considerations," European Journal of Operational Research, Elsevier, vol. 39(2), pages 174-179, March.
    6. Edward A. Silver, 1981. "Operations Research in Inventory Management: A Review and Critique," Operations Research, INFORMS, vol. 29(4), pages 628-645, August.
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    Citations

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    Cited by:

    1. E J Comeaux & B R Sarker, 2005. "Joint optimization of process improvement investments for supplier–buyer cooperative commerce," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 56(11), pages 1310-1324, November.
    2. Yoo, Seung Ho & Kim, DaeSoo & Park, Myung-Sub, 2009. "Economic production quantity model with imperfect-quality items, two-way imperfect inspection and sales return," International Journal of Production Economics, Elsevier, vol. 121(1), pages 255-265, September.
    3. Leung, Kit-Nam Francis, 2007. "A generalized geometric-programming solution to "An economic production quantity model with flexibility and reliability considerations"," European Journal of Operational Research, Elsevier, vol. 176(1), pages 240-251, January.
    4. Ouyang, Liang-Yuh & Wu, Kun-Shan & Ho, Chia-Huei, 2007. "An integrated vendor-buyer inventory model with quality improvement and lead time reduction," International Journal of Production Economics, Elsevier, vol. 108(1-2), pages 349-358, July.
    5. Li, Jing-An & Wu, Yue & Lai, Kin Keung & Liu, Ke, 2006. "Optimal ordering policy in a distribution system," International Journal of Production Economics, Elsevier, vol. 103(2), pages 527-534, October.
    6. Yoo, Seung Ho & Kim, DaeSoo & Park, Myung-Sub, 2012. "Lot sizing and quality investment with quality cost analyses for imperfect production and inspection processes with commercial return," International Journal of Production Economics, Elsevier, vol. 140(2), pages 922-933.
    7. Ahmed Abdel-Aleem & Mahmoud A. El-Sharief & Mohsen A. Hassan & Mohamed G. El-Sebaie, 2017. "A surface response optimization model for EPQ system with imperfect production process under rework and shortage," OPSEARCH, Springer;Operational Research Society of India, vol. 54(4), pages 735-751, December.

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