Economic order quantity model for items with imperfect quality with learning in inspection

The economic order quantity (EOQ) model is the simplest and earliest inventory model in the literature. Its simple mathematics is attributed to its assumptions, which are rarely met. Salameh and Jaber (2000) addressed one of these assumptions that items received or produced are not of perfect quality. This paper extends Salameh and Jaber's work for the case where there is learning in inspection. The model is realistic in that it considers situations of lost sales and backorders. Mathematical models are developed with numerical examples provided and results discussed for the cases of (i) partial transfer of learning, (ii) total transfer of learning, and (iii) no transfer of learning.