Pure and mixed strategies for the EOQ repair and waste disposal problem

In this paper the analysis of the economic order quantity (EOQ) repair and waste disposal model with variable setup numbers for production and repair within some collection time interval is continued. The cost analysis is now extended to the extreme waste disposal rates and it is shown that the pure (bang-bang) policy of either no waste disposal (total repair) or no repair (total waste disposal) dominates the strategy of mixing waste disposal and repair. Moreover, the different behavior of the minimum cost, of the optimal setup numbers, lot sizes and collection intervals for small and large waste disposal rates is discussed.