Economic production quantity model with backorders and items with imperfect/perfect quality options

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Behrouz Afshar Nadjafi
Hamed Pourbakhsh
Mohammad Mirhabibi
Hasan Khodaei
Babak Ghodami
Fahimeh Sadighi
Soheil Azizi

Abstract

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.

 

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How to Cite
Nadjafi, B., Pourbakhsh, H., Mirhabibi, M., Khodaei, H., Ghodami, B., Sadighi, F., & Azizi, S. (2019). Economic production quantity model with backorders and items with imperfect/perfect quality options. Journal of Applied Research and Technology, 17(4). https://doi.org/10.22201/icat.16656423.2019.17.4.794
Author Biographies

Behrouz Afshar Nadjafi

Department of Industrial Engineering, Faculty of Industrial and Mechanical Engineering, Qazvin Branch, Islamic Azad University, Qazvin, Iran

Hamed Pourbakhsh

Industrial Management Departament, Faculty of Management and Accounting, Allameh Tabatabaei University, Tehran, Iran

Mohammad Mirhabibi

Industrial Management Departament, Faculty of Management and Accounting, Allameh Tabatabaei University, Tehran, Iran

Hasan Khodaei

Industrial Management Departament, Faculty of Management and Accounting, Allameh Tabatabaei University, Tehran, Iran

Babak Ghodami

Industrial Management Departament, Faculty of Management and Accounting, Allameh Tabatabaei University, Tehran, Iran

Fahimeh Sadighi

Industrial Management Departament, Faculty of Management and Accounting, Allameh Tabatabaei University, Tehran, Iran

Soheil Azizi

Industrial Management Departament, Faculty of Management and Accounting, Allameh Tabatabaei University, Tehran, Iran