AN EPQ MODEL FOR IMPERFECT PRODUCTION PROCESS WITH DETERIORATION UNDER THE EFFECT OF INFLATION

In this research article, we develop an EPQ model for imperfect items with inflation. In this model demand, deterioration rate and production rate are constant. Shortage is permitted and completely backlogged. There are two type of inspection error. Type I error is screening for non-defects and type II for defects items. In this model there are rework on screening items. There are many type of cost like carrying cost, penalty cost, rework cost, scrapping cost. This model is developed to minimize the total inventory cost by optimizing the lot size and backordering quantity. Numerical example is used to optimize the lot size and backorder quantity. Sensitivity analysis is also used for the better experience of the relation between total inventory cost and parameter used in this model.