Title: EOQ model for imperfect quality items with partial backorders and screening constraint

Authors: Wan-Tsu Wang; Hui-Ming Wee; Yung-Lung Cheng; Chin Lin Wen; Leopoldo Eduardo Cárdenas-Barrón

Addresses: Department of Marketing and Distribution Management, Chien Hsin University of Science and Technology, Jungli 32097, Taiwan ' Department of Industrial and Systems Engineering, Chung Yuan Christian University, Jungli 32023, Taiwan ' Department of Marketing and Distribution Management, Chien Hsin University of Science and Technology, Jungli 32097, Taiwan ' Department of Industrial and Systems Engineering, Chung Yuan Christian University, Jungli 32023, Taiwan ' School of Engineering and Sciences, Tecnológico de Monterrey, Ave. E. Garza Sada 2501 Sur, C.P. 64 849 Monterrey, N.L., México

Abstract: This paper develops an EOQ model for imperfect quality items with partial backorders and screening constraint. The well-known renewal reward theory is applied to derive the expected total profit per unit time. Using the transformed time intervals as decision variables instead of the order size and the backorder quantity, a closed-form optimal solution is derived. Finally, the generality of the proposed inventory model (conforming to the classical EOQ model) is illustrated when some parameter values in the equations are sufficiently large or small. [Received 8 January 2014; Revised 25 June 2014; Accepted 6 August 2014]

Keywords: inventory management; economic order quantity; EOQ; imperfect quality; partial backordering; screening constraints; renewal reward theory; inventory modelling.

DOI: 10.1504/EJIE.2015.074384

European Journal of Industrial Engineering, 2015 Vol.9 No.6, pp.744 - 773

Available online: 25 Jan 2016 *

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