An alternative approach for determining production-lot size with repairable items and cost reduction delivery policy

This paper employs an alternative approach to derive the optimal lot size for economic production quantity (EPQ) model with repairable items and cost reduction delivery policy. A straightforward algebraic method is proposed here in lieu of the conventional approach with the need of applying first-order and second-order differentiations to the cost function for the proof of convexity and derivation of optimal solution. Research result of this paper is confirmed that is identical to that of a recent paper which used conventional method solving the same problem. The proposed alternative approach can be helpful for practitioner, who may not have enough knowledge of differential calculus to understand such an integrated production-shipment system.   Key words: Production lot size, algebraic approach, multiple deliveries, repairable items, production control, defective.

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