Determining Replenishment Lot Size and Shipment Policy for an EPQ Inventory Model with Delivery and Rework
Table 2
Results for the example.
Instance
Q continuous and n discrete Solution procedure for Case 1
Q and n discrete Solution procedure for Case 2
Lower bound
Instance 1 Example from Chiu et al. [7] and Chiu et al. [8]
Q = 1735.12899 n = 3 E[TCU] = 485540.66029
Q = 1735 n = 3 E[TCU] = 485540.66058
LB = 485540.6485389 for Case 1 (given (13)) LB = 485540.66029 for Case 2
Instance 2 Special Case (x = 0 then )
Q = 2385.34012 n = 5 E[TCU] = 425862.39472
Q = 2385 n = 5 E[TCU] = 425862.39559
LB = 425847.28209 for Case 1 (given (13)) LB = 425862.39472 for Case 2
Note that Chiu et al. [7] reported for the special case that the replenishment lot size is 2018 units and that the number of shipments is 3 with a total cost of 427938. The reader can notice that the solution for the special case reported by Chiu et al. [7] is erroneous.