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“Determination of Economic Order and Production Quantity in Inventory System Regarding the Quality of Items”

Torabi, Hassan | 2012

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  1. Type of Document: M.Sc. Thesis
  2. Language: Farsi
  3. Document No: 43280 (01)
  4. University: Sharif University of Technology
  5. Department: Industrial Engineering
  6. Advisor(s): Haji, Rasoul
  7. Abstract:
  8. EOQ and EPQ models have been among the most important and commonly used techniques for about 100 and 60 years respectively .But, they are involved in some assumptions that sometimes prevent them from being implemented in real situation of industry and production. One of these unrealistic assumptions is that all of items received or produced are of perfect quality. In order to overcome this constraint and make the mentioned models closer to the real environmentsome researches have been done. To this end,following the previous attemptsin this project we assumed to have destructive inspections and existence of imperfect and rejected items after rework. In our models, considering 3 circumstances (1- Imperfect and reworkable items are not counted into the inventory after inspection, 2- The mentioned items are kept in the stock up to the end of inspection in EOQ model or production period within each cycle in EPQ model, 3- Aforementioned items are kept in stock up to the end of cycle) we calculated the new EOQ and EPQ observing that these quantities are of decreasing order from the 1st to the 3rd case. Moreover, we found out that if we use the traditional amounts instead of new ones, the total cost per unit time will increase with the same order. Finally, as sum of the fractions of imperfect and reworkable items ascends, the EOQ, EPQ and total cost per unit time will raise. By the way, numerical examples are applied to investigate the results in both of the models.
  9. Keywords:
  10. Inspection ; Rework ; Costs ; Economic Order Quantity (EOQ) ; Economic Production Quantity (EPQ) ; Imperfect Items

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