EconPapers    
Economics at your fingertips  
 

Economic order quantity models for the shipment containing defective items with inspection errors and a sub-lot inspection policy

Harun Öztürk

European Journal of Industrial Engineering, 2020, vol. 14, issue 1, 85-126

Abstract: This paper assumes that there may be some defective items in the various lots of an ordered shipment and chooses a sub-lot inspection policy. Another assumption that this paper makes is that a shipment is sent by a distant supplier and, therefore, the replacement of the defective items is not economical if an additional order is given to the same supplier. This paper incorporates misclassification errors, which are of two types: type 1 and type 2. In order to deal with the received defective items in the shipment, two cases are discussed in this study. The first case is to send them back to the repair shop to be reworked, whereas in the second case, those defective items are sold and replaced with perfect items by buying at a higher cost from a local supplier. For each case, a mathematical model is developed, and an example is solved. The results show a close connection between the optimal order size and sample size, which can be adjusted to maximise the total profit. The results also indicate that the local purchase of replacements for defective items tends to produce greater total profit than reworking them. [Received: 26 June 2018; Accepted: 17 May 2019]

Keywords: economic order quantity; EOQ; defective items; sub-lot inspection; inspection errors; rework; emergency purchase. (search for similar items in EconPapers)
Date: 2020
References: Add references at CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://www.inderscience.com/link.php?id=105085 (text/html)
Access to full text is restricted to subscribers.

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:ids:eujine:v:14:y:2020:i:1:p:85-126

Access Statistics for this article

More articles in European Journal of Industrial Engineering from Inderscience Enterprises Ltd
Bibliographic data for series maintained by Sarah Parker ().

 
Page updated 2021-03-06
Handle: RePEc:ids:eujine:v:14:y:2020:i:1:p:85-126