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An EOQ model with process reliability considerations

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Journal of the Operational Research Society

Abstract

The classical economic order quantity (EOQ) model assumes that items produced are of perfect quality and that the unit cost of production is independent of demand. However, in realistic situations, product quality is never perfect, but is directly affected by the reliability of the production process. In this paper, we consider an EOQ model with imperfect production process and the unit production cost is directly related to process reliability and inversely related to the demand rate. In addition, a numerical example is given to illustrate the developed model. Sensitivity analysis is also performed and discussed.

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Acknowledgements

The authors sincerely acknowledge the anonymous referees for their constructive suggestions.

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Authors and Affiliations

  1. Utkal University, Bhubaneswar, 751004, India

    P K Tripathy

  2. Chung Yuan Christian University, Chungli, 32023, Taiwan

    W-M Wee

  3. Nilachal Institute of Computer Science, Bhubaneswar, 751010, India

    P R Majhi

Authors
  1. P K Tripathy
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  2. W-M Wee
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  3. P R Majhi
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Additional information

after one revision

This study was made possible by partial funding from Centre for Technology Innovation, Singapore.

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Tripathy, P., Wee, WM. & Majhi, P. An EOQ model with process reliability considerations. J Oper Res Soc 54, 549–554 (2003). https://doi.org/10.1057/palgrave.jors.2601540

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  • DOI: https://doi.org/10.1057/palgrave.jors.2601540

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