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Chinese Journal of Management Science ›› 2009, Vol. 17 ›› Issue (6): 116-121.

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Optimal Inventory Model With Completely Returning Defective Items

LI Qun-xia, ZHANG Qun, ZHU Xiao-ning, HAN Xiao-lei   

  1. School of Economics and Management, University of Suicnce and Teclconology Beijing, Beijing 100083, China
  • Received:2008-12-22 Revised:2009-09-08 Online:2009-12-30 Published:2009-12-30

Abstract: The paper proposes an optimal inventory model by completely returning defective items.Assuming that the defective percentage is uniformly distributed and the sale profit is a target function, the derivation method is applied to achieve the optimum order size and maximal sale profit value.Finally, simulation analysis is used to investigate the influences of the defective percentage on order size and sale profit.

Key words: inventory, defective rate, shortage quantity, backorder

CLC Number: