Mathematical Problems in Engineering

Research Article

Determining Replenishment Lot Size and Shipment Policy for an EPQ Inventory Model with Delivery and Rework

Table 2

Results for the example.
InstanceQ 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.