The economic order quantity model with inspection policy of zero-defect single sampling
International Journal of Quality & Reliability Management
ISSN: 0265-671X
Article publication date: 13 April 2021
Issue publication date: 25 January 2022
Abstract
Purpose
This paper proposes a new inventory model with inspection policy because in practice the received orders may contain non- conforming (NC) items. So, a buyer who receive an order from a supplier should use an inspection policy.
Design/methodology/approach
The inspection policy is assumed to be zero-defect single sampling. Under this policy a lot is accepted only if no defect has been identified in the inspected sample. The fraction of NC is assumed to be a random variable following a Binomial distribution and the number of NC items detected by inspection assumed to be a random variable, which follows a hypergeometric distribution. Order quantity and sample size are the two decision variables. A solution procedure is presented for the proposed model. The proposed procedure presents the optimal solution.
Findings
Numerical examples presented to illustrate the procedure outlined for the proposed model and its applicability. The results of numerical examples and comparing them with traditional EOQ model reveal that by the proposed model, the buyer could reduce total cost that shows the efficiency and validity of the proposed model.
Originality/value
The novelty of this paper is the new proposed model that considers inspection policy in inventory management. The proposed model determines sample size as well as order quantity to consider both subject of inventory management and quality control, simultaneously.
Keywords
Citation
Nakhaeinejad, M. (2022), "The economic order quantity model with inspection policy of zero-defect single sampling", International Journal of Quality & Reliability Management, Vol. 39 No. 2, pp. 521-536. https://doi.org/10.1108/IJQRM-10-2020-0338
Publisher
:Emerald Publishing Limited
Copyright © 2021, Emerald Publishing Limited