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Economic production quantity model for items with continuous quality characteristic, rework and reject

Author

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  • Jia-Chi Tsou
  • Seyed Hejazi
  • Morteza Barzoki

Abstract

The economic production quantity (EPQ) model is a well-known and commonly used inventory control technique. However, the model is built on an unrealistic assumption that all the produced items need to be of perfect quality. Having relaxed this assumption, some researchers have studied the effects of the imperfect products on the inventory control techniques. This article, thus, attempts to develop an EPQ model with continuous quality characteristic and rework. To this end, this study assumes that a produced item follows a general distribution pattern, with its quality being perfect, imperfect or defective. The analysis of the model developed indicates that there is an optimal lot size, which generates minimum total cost. Moreover, the results show that the optimal lot size of the model equals that of the classical EPQ model in case imperfect quality percentage is zero or even close to zero.

Suggested Citation

  • Jia-Chi Tsou & Seyed Hejazi & Morteza Barzoki, 2012. "Economic production quantity model for items with continuous quality characteristic, rework and reject," International Journal of Systems Science, Taylor & Francis Journals, vol. 43(12), pages 2261-2267.
    • Handle: RePEc:taf:tsysxx:v:43:y:2012:i:12:p:2261-2267
    DOI: 10.1080/00207721.2011.569769
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    Cited by:

    1. Gerardo Treviño-Garza & Krystel K. Castillo-Villar & Leopoldo Eduardo Cárdenas-Barrón, 2015. "Joint determination of the lot size and number of shipments for a family of integrated vendor–buyer systems considering defective products," International Journal of Systems Science, Taylor & Francis Journals, vol. 46(9), pages 1705-1716, July.
    2. Javad Asadkhani & Hadi Mokhtari & Saman Tahmasebpoor, 2022. "Optimal lot-sizing under learning effect in inspection errors with different types of imperfect quality items," Operational Research, Springer, vol. 22(3), pages 2631-2665, July.
    3. Lee, Sunghee & Kim, Daeki, 2014. "An optimal policy for a single-vendor single-buyer integrated production–distribution model with both deteriorating and defective items," International Journal of Production Economics, Elsevier, vol. 147(PA), pages 161-170.

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