An Improvement of EOQ Model with Defective Items and Special Sales Price
Abstract
Teerapabolarn and Khamrod (2017) determined EOQ model with defective items and special sales price by assuming the level of inventory, while a special order is placed, to be 0 unit, which does not cover all levels of inventory. In order to cover all levels of inventory, this study improves the EOQ model of Teerapabolarn and Khamrod (2017) by assuming the level of inventory, while a special order is placed, to be q unit(s), where 0 £ q £ Q* and Q* is the optimal order quantity before and after special sales, and in this study, the algebraic method is used to determine the desired EOQ model. In addition, some examples are provided to illustrate application of the obtained EOQ model. Keywords : EOQ model, defective items, special sales price.References
Grubbström, R. W. (1996). Material Requirements Planning and Manufacturing Resource Planning. International Encyclopedia of Business and Management. Routledge, London.
Huang, Y. F. (2003). The EOQ and EPQ models with backlogging and defective items using the algebraic approach. Journal of Statistics and Management Systems, 6(2), 171-180.
Salameh, M. K., & Jaber, M. Y. (2000). Economic production quantity model for items with imperfect quality, International Journal of Production Economics, 64(1-3), 59-64.
Schwaller, R .L. (1988). EOQ under inspection costs. Production and Inventory Management Journal, 29(3), 22-24.
Taleizadeh, A. A., Pentico, D. W., Aryanezhad, M., & Ghoreyshi, S. M. (2012). An economic order quantity model with partial backordering and a special sale price. European Journal of Operational Research, 221(3), 571-583.
Teerapabolarn, K, & Khamrod, S. (2017). The EOQ model with defective items and special sales price. In Proceedings of Annual Pure and Applied Mathematics Conference (pp. 31-40), Bangkok: Chulalongkorn University Press. (in Thai)
Teerapabolarn, K. & Thornsri, N. (2014). Determination of the EOQ model with special sales price by algebraic method. Srinakharinwirot Science Journal, 30(1), 193-207. (in Thai)
Tersine, R. J. (1994). Principles of Inventory and Materials Management. Prentice-Hall, New Jersey.
Tu, Y. C., Huang, Y. F., Chen, W. K., & Chen, H. F. (2011). Using simple methods to derive EOQ and EPQ models with shortage and imperfect quality. Journal of Information & Optimization Sciences, 32(6), 1333-1340.
Huang, Y. F. (2003). The EOQ and EPQ models with backlogging and defective items using the algebraic approach. Journal of Statistics and Management Systems, 6(2), 171-180.
Salameh, M. K., & Jaber, M. Y. (2000). Economic production quantity model for items with imperfect quality, International Journal of Production Economics, 64(1-3), 59-64.
Schwaller, R .L. (1988). EOQ under inspection costs. Production and Inventory Management Journal, 29(3), 22-24.
Taleizadeh, A. A., Pentico, D. W., Aryanezhad, M., & Ghoreyshi, S. M. (2012). An economic order quantity model with partial backordering and a special sale price. European Journal of Operational Research, 221(3), 571-583.
Teerapabolarn, K, & Khamrod, S. (2017). The EOQ model with defective items and special sales price. In Proceedings of Annual Pure and Applied Mathematics Conference (pp. 31-40), Bangkok: Chulalongkorn University Press. (in Thai)
Teerapabolarn, K. & Thornsri, N. (2014). Determination of the EOQ model with special sales price by algebraic method. Srinakharinwirot Science Journal, 30(1), 193-207. (in Thai)
Tersine, R. J. (1994). Principles of Inventory and Materials Management. Prentice-Hall, New Jersey.
Tu, Y. C., Huang, Y. F., Chen, W. K., & Chen, H. F. (2011). Using simple methods to derive EOQ and EPQ models with shortage and imperfect quality. Journal of Information & Optimization Sciences, 32(6), 1333-1340.
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Published
2018-01-04
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