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Quality Considerations

In: Imperfect Inventory Systems

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  • Ata Allah Taleizadeh

    (University of Tehran)

Abstract

Traditional economic order quantity (EOQ) models offer a mathematical approach to determine the optimal number of items a buyer should order to a supplier each time. One major implicit assumption of these models is that all the items are of perfect quality (Rezaei and Salimi 2012). However, presence of defective products in manufacturing processes is inevitable. There is no production process which can guarantee that all its products would be perfect and free from defect. Hence, there is a yield for any production process. Basic and classical inventory control models usually ignore this fact. They assume all output products are perfect and with equal quality; however, due to the limitation of quality control procedures, among other factors, items of imperfect quality are often present. So it has given researchers the opportunity to relax this assumption and apply a yield to investigate and study its impact on several variables of inventory models such as order quantity and cycle time.

Suggested Citation

  • Ata Allah Taleizadeh, 2021. "Quality Considerations," Springer Books, in: Imperfect Inventory Systems, chapter 0, pages 497-548, Springer.
    • Handle: RePEc:spr:sprchp:978-3-030-56974-7_6
    DOI: 10.1007/978-3-030-56974-7_6
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