Jinn-Tsair Teng's EPQ Model

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Jinn-Tsair Teng (2005) was developed an EPQ model suitable for high tech product during any time horizon in its product life cycle. It was assumed that demand rate and production cost both are positive and fluctuating with time. This model was developed for the firm which adopt vender managed inventory. The total cost is a convex function of number of replenishment. The model showed the influence of demand and purchase cost over the length of the production run time and EPQ. The rate of production was assumed as a constant for this model. But the model can be extended by assuming the time varying production rate, deterioration rate, shortages and quantity discount. During production machine can have random failures and due to this working stops.…show more content…
It is assumed that while screening products at a production process , imperfect quality items may be accepted and good items may be rejected. The finding of this study shows that the changes in net batch quantity needed to satisfy the demand and the total cost are very sensitive to error like perfect items incorrectly rejected. Chen(2009) includes the quality cost in the EPQ model. Taguchis symmetric quadratic quality loss function will be adopted for evaluating the product quality. It is considered that the Product quality is not always perfect and is the function of the production process. It is found out that the process standard deviation, the demand rate and quality loss coefficient have a major effect on the expected total cost per unit time. The model can be extended by considering others parameter like inspection error, manufacturing cost, and defective cost. As imperfect quality items are produced during production, the inspection of the lot becomes indispensable. Particularly when the products are of deteriorating in nature. Jaggi & Mittal(2011) assumes inspection rate more than the demand. Developed model helps the retailer to determine his ordering policy. Initially at the start of the…show more content…
Lan el at.(2007) solve the economic production quantity model by using algebraic method. It is assumed that the lead time is stochastic and finite range. Shortage are allowed and backlogged. Teng el at.(2005) proposed an algorithm to determine the optimal replenishment cycle time and ordering quantity.EOQ model from the previous research is extended to allow for deteriorating item and non zero ending inventory. It is observed that increase in selling price results increase in optimal length of ordering cycle, optimal inventory level and maximum total profit per unit time. The optimal length of ordering cycle, optimal ordering quantity and maximum total profit per unit time decreases with increase in the deteriorating rate. Chang(2004) calculate the optimal cycle time , optimal reorder time and minimum cost of the EOQ and EPQ without using classical optimization techniques. An algebraic approach suggested by previous researcher has been used to solve the EPQ model with shortage and variable lead

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