Quality Inspectability Investment on Imperfect Production Processes under Limited Capital
نویسنده
چکیده
Imperfect production processes lead to imperfect products and decrease the profit of a business. Improvement in the production process by increasing the investment cost will decrease the defective percentage of items. This study develops an EPQ model with investments on imperfect production processes under limited capital. An algorithm is developed to derive the replenishment and investment policies such that the expected unit time profit is maximized. An alternative approach for the solution procedure is provided. Keywords Inventory, Economic production quantity; Imperfect quality; Investment.
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