An Inventory Model for Imperfect Quality Products with Rework, Distinct Holding Costs, and Nonlinear Demand Dependent on Price

Traditionally, the inventory models available in literature assume that all articles purchased lot are perfect and demand is constant. However, there many causes provoke presence of defective goods dependent on some factors. In this direction, paper develops an economic order quantity (EOQ) model for imperfect quality items, taking into account ones sent as a single to repair shop reworking. After reparation, items return system inspected again. Depending moment at which reworked arrives system, two scenarios can occur: Case 1: The enters when still exists inventory; 2: comes level zero. Furthermore, it considered holding costs distinct. products nonlinear price, follows polynomial function. main goal optimize jointly size selling price such expected total profit per unit time maximized. Some theoretic results derived algorithms developed determining optimal solution each modeled case. It worth mentioning proposed general due fact contains published particular cases. With aim illustrate use model, numerical examples solved.