An economic order quantity model for an imperfect production process with entropy cost

M.Y. Jaber, M. Bonney and I. Moualek

International Journal of Production Economics, 2009, vol. 118, issue 1, 26-33

Abstract: Among the assumptions of the classical economic order quantity (EOQ) model is that all units that are purchased (or produced) are of perfect quality. However, this is frequently unrealistic since production processes deteriorate resulting in the production of defective products requiring rework. Some recent studies suggest that production systems performance might be improved by applying the first and second laws of thermodynamics to reduce system entropy (or disorder). This paper applies the concept of entropy cost to extend the classical EOQ model under the assumptions of perfect and imperfect quality. Mathematical models are developed and numerical examples illustrating the solution procedure are provided. Accounting for entropy cost suggests that order quantities should be larger than the figures derived from the classical EOQ model.

Keywords: Lot; sizing; Defects; Rework; Entropy; cost (search for similar items in EconPapers)
Date: 2009
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0925-5273(08)00243-0
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:proeco:v:118:y:2009:i:1:p:26-33

Access Statistics for this article

International Journal of Production Economics is currently edited by Stefan Minner

More articles in International Journal of Production Economics from Elsevier
Bibliographic data for series maintained by Catherine Liu ().