An EOQ model with imperfective quality items under an announced price increase

Abstract

The economic ordering quantity (EOQ) model has been widely applied to inventory management. However, some assumptions in the model are unrealistic in practice. One of the assumptions is that all produced units are of good quality. This article deals with an EOQ model for products with imperfect quality under an announced price increase, where the defectives are screened out by a 100% inspection process, and which can be sold as a single batch at the end of the inspection process. The optimal ordering policies associated with three kinds of effective times of the price increase are obtained. A numerical example is then provided to illustrate the proposed model. Besides, based on the numerical example, the effects of some important parameters on the optimal order quantity and the corresponding saving in cost are also investigated.

經濟訂購批量(EOQ)模式已被廣泛運用於存貨管理 ， 然而此模型中的許多假設於實務上是不實際的 ， 其中一項即是訂購所接收的產品皆為良品。 本文之目的即是要探討具不完美品質之產品於價格預期上漲下的EOQ模式 ， 其中批量中的不良品會被100%檢驗所篩出 ， 且於檢驗結束時以較低的價格整批售出。 本文以最大化於價格上漲時採取特殊採購所節省的成本為目標 ， 推導出對應於三種不同價格上漲時間之最佳訂購量 ， 並以一數值範例說明所提出的存貨模式。 另外 ， 本文並藉此數值範例 ， 探討重要參數對最佳訂購量與其對應之節省成本的影響。

(*聯絡人: [email protected])

Keywords:

• EOQ
• announced price increase
• imperfect quality

Keywords:

• 關鍵詞： EOQ ， 預期價格上漲 ， 不完美品質

Notes

(*聯絡人: [email protected])