International Journal of Computational and Applied Mathematics

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An EPQ Model of Imperfect Production Processes with Shortages and Quality Cost


Affiliations
1 Research Scholar, Bharathiar University, Coimbatore-641 035, India
2 Principal, Chickanna Government Arts College, Tirupur, India
     

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The Economic Production Quantity (EPQ) model is commonly used by practitioners in the fields of production and inventory management to assist them in making decision on production lot size. The assumption in the EPQ model is that all units produced are perfect and shortages are allowed. But, in real situation the defective items will be produced in each cycle of production and shortages and scrap are possible. These assumptions will underestimate the actual required quantity. Hence, the defective items can not be ignored in the production process. The objective of this paper is to provide a framework to integrate production of imperfect quality items, cost of quality and backlogging into a single EPQ model. To achieve this objective a suitable mathematical model is developed and the optimal production lot size which minimizes the total cost is derived. The global optimal solution is derived and an illustrative example is provided and numerically verified. The validation of result in this model was coded in Microsoft Visual Basic 6.0.

Keywords

EPQ, Cost of Quality, Defective Items, Cycle Time, Shortages, Optimality, Demand And Production
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  • An EPQ Model of Imperfect Production Processes with Shortages and Quality Cost

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Authors

C. Krishnamoorthi
Research Scholar, Bharathiar University, Coimbatore-641 035, India
S. Panayappan
Principal, Chickanna Government Arts College, Tirupur, India

Abstract


The Economic Production Quantity (EPQ) model is commonly used by practitioners in the fields of production and inventory management to assist them in making decision on production lot size. The assumption in the EPQ model is that all units produced are perfect and shortages are allowed. But, in real situation the defective items will be produced in each cycle of production and shortages and scrap are possible. These assumptions will underestimate the actual required quantity. Hence, the defective items can not be ignored in the production process. The objective of this paper is to provide a framework to integrate production of imperfect quality items, cost of quality and backlogging into a single EPQ model. To achieve this objective a suitable mathematical model is developed and the optimal production lot size which minimizes the total cost is derived. The global optimal solution is derived and an illustrative example is provided and numerically verified. The validation of result in this model was coded in Microsoft Visual Basic 6.0.

Keywords


EPQ, Cost of Quality, Defective Items, Cycle Time, Shortages, Optimality, Demand And Production

References