Joint Lot Sizing and Inspection Policy in an EOQ Model with Random Yield

Xin Zhang · Yigal Gerchak

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Supply Chain and Inventory Management Management and Optimization Techniques Sustainable Supply Chain Management

Abstract

We study a joint lot sizing and inspection policy under an EOQ model where a random proportion of units are defective. Those unitscan be discovered only through costly inspections. The problem is thus bivariate: both lot size and fraction to inspect are to be chosen. We first analyze a model in which the only penalty for uninspected defectives is financial, and then consider a model where defective units cannot be used and thus must be replaced by non-defective ones.

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1980Optimal inventory policies when stockouts result from defective products

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2019Joint Economic Lot-sizing in Multi-product Multi-level Integrated Supply Chains: Generalized Benders Decomposition 2009Economic production quantity model with imperfect-quality items, two-way imperfect inspection and sales return 2016Imperfect production inventory model with production rate dependent defective rate and advertisement dependent demand 2003A new EPQ model: integrating lower pricing, rework and reject situations 2006An imperfect production process in a volume flexible inventory model 2002An integrated vendor-buyer cooperative inventory model for items with imperfect quality 2003A simple integrated production policy of an imperfect item for vendor and buyer 2007A deterministic, multi-item inventory model with supplier selection and imperfect quality

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