Economic order quantity with partial backordering and sampling inspection

Authors

School of Industrial Engineering, College of Engineering, University of Tehran, Tehran, Iran

Abstract

To access the efficient inventory system, managers should consider all the situations that have happened in reality. One of these situations is the presence of the defective items in each received lot and the other situation is being the group of customers that do not wait to fulfill their requirements from the vendor and choose another one to get their orders so the proportion of the backordered items becomes lost sales. In this paper we consider both mentioned situations simultaneously to model the inventory system while the proportion of backordering is constant and the imperfect rate follows a uniform distribution, also the particular sampling process is considered that is explained in detail in "Problem definition". Our purpose in this paper is to access the optimum value for the total revenue in a year by a particular solution method that is provided in "Solution method". After these sections we provide the numerical results in "Numerical result" to show the effect of sensitive parameters on the decision variables and the total profit.

Keywords