The deterministic inventory models with shortage and defective items derived without derivatives

Abstract This paper is to want to extend Grubbström and Erdem [5] and Cárdenas-Barrón’s [6] methods to algebraically determine the EOQ and EPQ models with backlogging and defective items. This paper adopts 100% inspection policy and the known proportion of defective items is removed prior to storage or use after the screening process. This paper provides this algebraic approach that must be considered as a pedagogical advantage for explaining the EOQ and EPQ concepts to students that lack knowledge of derivatives, simultaneous equations and the procedure to construct and examine the Hessian matrix. This algebraic approach could therefore be used easily to introduce the basic inventory theories to younger students who lack the knowledge of calculus.