Y-S. P. Chiu,1 K-K. Chen2, F-T. Cheng,3 C-K. Ting*1
1 Department of Industrial Engineering and Management Chaoyang University of Technology Taichung 413, Taiwan. *djk@cyut.edu.tw.
2 Department of Accounting, College of Management National Changhua University of Education Changhua 500, Taiwan.
3 Department of Industrial Engineering & Systems Management Feng Chia University Taichung 407, Taiwan.
ABSTRACT
]]> A conventional approach for solving an economic production quantity (EPQ) model with multi-delivery policy and quality assurance is to use mathematical modeling for deriving the system cost function and to employ differential calculus for proving convexity of the cost function before determining the optimal operating policy. This paper presents a simplified solution procedure to reexamine a specific EPQ model [1] and demonstrates that both, the optimal manufacturing lot size and the long-run cost function can be derived without derivatives. The proposed approach may enable practitioners-with little knowledge of calculus-to understand such a real life vendor-buyer integrated system with ease.Keywords: manufacturing system, replenishment lot size, discontinuous issuing policy, algebraic approach, imperfect EPQ model, rework.
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