The Economic Production Quantity Model with Random Scrap Items Derived Algebraically

• Main Authors: Feng-Yu Lin, 林鳳玉
• Other Authors: Yuan-Shyi Chiu
• Format: Others
• Language: zh-TW
• Published: 2005
• Online Access: http://ndltd.ncl.edu.tw/handle/85797805786647917532

碩士 === 朝陽科技大學 === 工業工程與管理系碩士班 === 93 === This study proposes an algebraic method for solving imperfect quality economic production quantity (EPQ) model. It includes the following two subjects: (1) the EPQ model with random scrap items and shortages are permitted and backordered; (2) the EPQ model with random scrap items and no shortages are allowed. Algebraic derivations are used in each case, in order to obtain the optimal production operating policies that minimize the overall production-inventory costs. Traditional approaches for deriving optimal production lot size are by using the differential calculus on the production-inventory cost function with the need to prove optimality first. Recent articles proposed the algebraic approach to the solution of classic economic order quantity (EOQ) and economic production quantity (EPQ) model without reference to the use of derivatives. This paper extends it to a finite production rate model taking the backlogging and random scrap rate into consideration. This study demonstrates that optimal production lot size for the aforementioned model can be derived algebraically and the expected overall production-inventory costs can be obtained immediately as well. The results of this thesis are verified with prior works of the same models and when scrap rate equals to zero, it is identical to the optimal lot-size equations given by the classic EPQ models. Numerical examples demonstrate their practical usages.