Title: An EOQ model for imperfect quality items with multiple quality characteristic screening and shortage backordering

Authors: Allen H. Tai

Addresses: Department of Applied Mathematics, The Hong Kong Polytechnic University, Hung Hom, Hong Kong

Abstract: In this paper, we propose an inventory model where items are inspected through multiple screening processes on varies quality characteristics before delivery to customers. Each screening process on a single quality characteristic has independent screening rate and defective percentage. Defective items screened out are stored and then returned to supplier. Shortage backordering are also allowed in the model. Two approaches are used to obtain the closed-form optimal order size and the maximum backordering quantity. Numerical examples are also provided to demonstrate the use of the model. [Received 16 February 2013; Revised 8 July 2013; Revised 16 November 2013; Accepted 27 January 2014]

Keywords: economic order quantity; EOQ; multiple screening processes; imperfect quality items; shortage backordering; inventory modelling; defective items.

DOI: 10.1504/EJIE.2015.068657

European Journal of Industrial Engineering, 2015 Vol.9 No.2, pp.261 - 276

Published online: 08 Apr 2015 *

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