An Inventory Model with Embeeded Acceptance Sampling Plan

  • Authors

    • N Konda Reddy
    • K Murali Krishna
    • A V.N. Murty
    2018-08-24
    https://doi.org/10.14419/ijet.v7i3.31.18279
  • ATI, Excel, Inventory, Sampling Plan
  • The classical inventory model assumes that the quality of the items received matches with the quality required. In many cases the deviation in quality results in additional costs to the stockiest and sometimes lead to rejection of the received lot. The cost of inspection along with the other inventory costs can be unified into a single model by embedding an acceptance sampling plan into the inventory model. When the lot is accepted there is a possibility of unseen defectives, which may reach the customer leading to loss of goodwill. If the lot is rejected on inspection, the model suggests rectification and removal of non-confirming units. In this paper a model is developed to determine (i) the Economic Order Quantity and (ii) a single sample plan of the attribute type, which minimizes the Average Total Inspection. The model utilizes spreadsheet solutions to handle statistical functions.

     

     

  • References

    1. [1] Montgomery, D.C, An Introduction to Statistical Quality Control, John & Wiley, Inc, (1977).

      [2] Wei Shih, Optimal Inventory Policies when Stock Result from Defective Products, International Journal of Production Research, Vol.8 (1980), pp. 677-686.

      [3] Karlo, A.H and Gohil, M.M, A lot Size Model with Backlogging when the Amount Received is Uncertain, International Journal of Production Research, Vol.20 No. 6, (1982), pp.775-786.

      [4] Silver, E.A and Peterson, R, Decision systems for inventory management and production planning, Wiley, 2nd Edition (1985), New Delhi.

      [5] Sekhar Naidu, B.M.C, Sarma, K.V.S. and Goyal, S.K, Optimal Two Stage Production-Inventory Policy with Whole lot and Split lots, Production Planning and Control, Vol.6, No. 2 (1995)

      [6] Mohan Naidu, G and Sarma, K.V.S, Optimal order level systems for products with imperfect quality, Industrial Engineering Journal, Vol.24, No.5 (1998).

  • Downloads

  • How to Cite

    Konda Reddy, N., Murali Krishna, K., & V.N. Murty, A. (2018). An Inventory Model with Embeeded Acceptance Sampling Plan. International Journal of Engineering & Technology, 7(3.31), 121-125. https://doi.org/10.14419/ijet.v7i3.31.18279