A review of the extensions of a modified EOQ model for imperfect quality items

Abstract

Imperfect items in the raw material and production stages of a supply chain directly impact the coordination of the product flow within a supply chain. In response to this concern, production and inventory lot sizing models, which incorporate imperfect items into their formulation have become an important and growing area of research. The contribution of Salameh and Jaber (2000) is one of the fundamental models on lot sizing when procured items are of imperfect quality. Over the past decade, there has been a noticeable amount of interest in the EOQ model for imperfect items that was set forth in Salameh and Jaber (2000). Several researchers have published adaptations and extensions of this original model that address supply chain coordination, quality improvement and yield management, and the impact of human error on production and inventory systems. In this paper, we summarize the current body of research that has extended the Salameh and Jaber (2000) EOQ model for imperfect items. Some possible future research directions are identified at the end of the paper.