Optimal Lot Sizing and Testing for Items Sold with Free-Repair Warranty
We developed a model to jointly determine the optimal lot size and product inspection policy for a deteriorating production system, when products are sold under free-repair warranty. At the end of each production of a lot, if the process is in-control, then all items in the lot are released for sale with no inspection. Otherwise, if the process is out-of-control, the last K products in a lot are inspected and nonconforming products are reworked before they are released for sale to reduce the post-sale warranty cost. There exist a unique optimal lot size and a corresponding inspection policy such that the expected total cost per unit time is minimized. Numerical examples are given to illustrate the model.
Lot size Product inspection Product Warranty
Jian Yu Zhiyun Wang
School of Management, Hangzhou Dianzi University, Hangzhou, 310018, China
国际会议
第八届武汉电子商务国际会议(The Eighth Wuhan International Conference on E-Business)
武汉
英文
2862-2867
2009-05-30（万方平台首次上网日期，不代表论文的发表时间）