MODEL ECONOMIC PRODUCTION QUANTITY KETIKA TERJADI BARANG CACAT DAN KEKURANGAN STOK

Abstract

This paper discusses Economic Production Quantity (EPQ) model with defective items and shortage, which is a review from the article Krishnamoorthi & Panayappan [International Journal of Management Science and Engineering Management 7(3) (2012): 220-223]. EPQ model discussed is based on defective item condition when shortage is allowed. This model considers the cost incurred for meeting the demand and also considers the fixed time to place a product. Furthermore, a numerical example is given to explain the problem discussed