Abstract:
The main objective of the research is to evaluate the recently developed economic
production models with imperfect quality items of raw material and consider their
extensions to the case where the percentage of imperfect quality items is a random
variable having a known probability density function. The deterministic models
will be evaluated by examining the effects of the parameters on the optimal
solution. The probabilistic models will be simulated using various density
functions for the percentage of imperfect quality items to compare the theoretical
and the computational solutions. The results will be used to develop an economic
production model having an optimal ordering policy of raw material.
