International Journal of Supply Chain Management
Vol 7, No 6 (2018): International Journal of Supply Chain Management (IJSCM)

A Fuzzy Economic Order Quantity (EOQ) Model with Consideration of Quality Items, Inspection Errors and Sales Return


Fadaei Eshkiki, Mahdi ( Assistant Professor ) , Saberifard, Nima ( Ph.D. Student ) , Ajalli, Mehdi ( Postdoctoral Student of Industrial Management )



Article Info

Publish Date
27 Dec 2018

Abstract

In this paper, we develop an economic order quantity model with imperfect quality, inspection errors and sales returns, where upon the arrival of order lot, 100% screening process is performed and the items of imperfect quality are sold as a single batch at a lessen price, prior to receiving the next shipment. The screening process to remove the defective items may involve two types of errors. In this article we extend the Khan et al. (2011) model by considering demand and defective rate in fuzzy sense and also sales return in our model. The objective is to determine the optimal order lot size to maximize the total profit. We use the signed distance, a ranking method for fuzzy numbers, to find the approximate of total profit per unit time in the fuzzy sense. The impact of fuzziness of fraction of defectives and demand rate on optimal solution is showed by numerical example.


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Original Source : http://ojs.excelingtech.co.uk/index.php/IJSCM/article/view/2043
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Journal Info

Abbrev

IJSCM

Publisher

Subject

Decision Sciences, Operations Research & Management Engineering Environmental Science Industrial & Manufacturing Engineering Transportation

Description

International Journal of Supply Chain Management (IJSCM) is a peer-reviewed indexed journal, ISSN: 2050-7399 (Online), 2051-3771 (Print), that publishes original, high quality, supply chain management empirical research that will have a significant impact on SCM theory and practice. Manuscripts ...