Title: Optimal production lots for items with imperfect production and screening processes without using derivatives

Authors: Hui-Ming Teng; Ping-Hui Hsu

Addresses: Department of Business Administration, Chihlee Institute of Technology, New Taipei, 22005, Taiwan ' Department of Business Administration, De Lin Institute of Technology, New Taipei, 23654, Taiwan

Abstract: Complicated traditional computing processes take the first and second order derivatives to obtain the EOQ/EPQ formula that are difficult to understand. This study proposes an EPQ model for imperfect items, which utilises a simple computing method without using derivatives and considers different screening rates to obtain the optimal production lots. The analytical method for sensitivity analysis is examined. A numerical example is provided to illustrate the proposed model. Using the proposed model, researchers who are unfamiliar with calculus may be able to find a solution to procedures with inventory problems more easily.

Keywords: imperfect quality; screening rates; derivatives; optimisation; production lots; imperfect production; EPQ; economic production quantity; inventory management.

DOI: 10.1504/IJMED.2015.070100

International Journal of Management and Enterprise Development, 2015 Vol.14 No.2, pp.172 - 185

Available online: 26 Jun 2015 *

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