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A Two-Warehouse Inventory Model with Imperfect Quality and Inspection Errors

Keywords: EOQ , imperfect quality , misclassification errors , two-warehouse

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Abstract:

In this study, we establish a new inventory model with two warehouses, imperfect quality and inspection errors simultaneously. The mathematical model by maximizing the annual total profit and the solution procedure are developed. As a byproduct, we correct some technical error in developing the optimal ordering policies in the above two papers. Morevoer, we find a mild condition satisfied by most common distributions to make the ETPU(y) concavity. The Proposition 1 is used to determine the optimal solution of ETPU(y).

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