Economic order quantity model of imperfect items using single sampling plan for attributes

Abstract

In this paper, an economic order quantity (EOQ) model is proposed for imperfect items in a lot of products. A single sampling plan is considered in this model. The sample in a lot of products is chosen and inspected by attribute. If the number of defective items in the sample is less than or equal to the acceptance number, the order lot is accepted. On the other hand, if the order lot is rejected, the items in the lot are fully inspected, and then the defective items are sent to repair. This paper proposes a non-linear optimization model that determines the order size, the sample size, and the acceptance number that maximize the total profit per unit time based on the order lot tolerance percentage of defective (LTPD), the average outgoing quality (AOQ), the consumer risk, and the average outgoing quality limit (AOQL). Numerical examples and sensitively analysis are exemplified.

Keywords

• acceptance sampling plan
• aoq
• aoql
• eoq model
• ltpd
• repair