Article ID: | iaor1999117 |
Country: | United States |
Volume: | 45 |
Issue: | 4 |
Start Page Number: | 423 |
End Page Number: | 433 |
Publication Date: | Jun 1998 |
Journal: | Naval Research Logistics |
Authors: | Hariga M., Ben-Daya M. |
Keywords: | inventory |
In this paper, we consider the economic production quantity problem in the presence of imperfect processes. In the literature, the time to shift from the in-control state to the out-of-control state is assumed to be exponentially distributed. In this study, we consider general time to shift distributions and provide distribution-based and distribution-free bounds on the optimal cost. For the exponential case, we compare the optimal solutions to approximate solutions proposed in the literature. A numerical example is used to illustrate the analysis presented and to conduct a sensitivity analysis in order to see the effect of the input parameters on the various solutions to the problem.