An economic production quantity model with stochastic demand in an imperfect production system

Biswajit Sarkar, Shib Sankar Sana, Kripasindhu Chaudhuri

Research output: Contribution to journalArticle

43 Citations (Scopus)

Abstract

The paper deals with an economic production quantity (EPQ) model for both continuous and discrete random demand of merchandise. Usually, 100% of the total product is not of perfect quality, in practice. A certain percent of the total product is of imperfect quality, which follows a probability distribution. The imperfect quality items are reworked at a cost. The percent of defectiveness in the total product usually increases with an increase in production run time. The associated expected integrated profit is maximised by analytical calculus method. The solution of the model is first derived for a general distribution function and then it is analysed for uniform and Poisson distribution of demand. Numerical examples along with the graphical illustrations are lastly provided to illustrate the study of optimal cost functions of the system.

Original languageEnglish
Pages (from-to)259-283
Number of pages25
JournalInternational Journal of Services and Operations Management
Volume9
Issue number3
DOIs
Publication statusPublished - 2011 Jul 1

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Poisson distribution
Economics
Cost functions
Probability distributions
Distribution functions
Profitability
Costs
Economic production quantity
Stochastic demand
Imperfect quality
Random demand
Profit
Distribution function
Probability distribution
Integrated
Cost function

All Science Journal Classification (ASJC) codes

  • Management Science and Operations Research
  • Industrial and Manufacturing Engineering
  • Management of Technology and Innovation

Cite this

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An economic production quantity model with stochastic demand in an imperfect production system. / Sarkar, Biswajit; Sana, Shib Sankar; Chaudhuri, Kripasindhu.

In: International Journal of Services and Operations Management, Vol. 9, No. 3, 01.07.2011, p. 259-283.

Research output: Contribution to journalArticle

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