| Article ID: | iaor198859 |
| Country: | United Kingdom |
| Volume: | 16 |
| Start Page Number: | 595 |
| End Page Number: | 601 |
| Publication Date: | Dec 1988 |
| Journal: | OMEGA |
| Authors: | Noori H., Keller G. |
| Keywords: | quality & reliability |
This paper presents a model for justification of investing in quality improvement. Recently, Porteus developed a simple model to demonstrate a significant relationship between quality and lot size. This paper extends the Porteus work to the situation where demand during lead time is probabilistic. Explicit solutions are obtained for two specific demand distributions using a logarithmic cost function.