Central European Journal of Operations Research

, Volume 21, Issue 4, pp 867–885 | Cite as

Economic order and production quantity models without constraint on the percentage of defective items

Original Paper

Abstract

The paper deals with a version of the economic order and production quantity models when the fraction of defective items is probability variable that either may vary from cycle to cycle, or remains the same as it was in the first period. We drop the well-known assumption intended to avoid shortages, and two lot sizing rules are derived. Relationships between the new and known lot sizing rules are analyzed and cases are identified when lot sizing rules give significantly different results.

Keywords

Production Inventory Lot sizing Defective items Backlogging 

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Copyright information

© Springer-Verlag Berlin Heidelberg 2012

Authors and Affiliations

  1. 1.Faculty of Business and Economics, University of PécsPécsHungary

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