Determination of Economic Ordering Policies under Trade credit with Application of Zero Acceptance number Single Sampling by Attributes involving Destructive Testing, Inspection Errors

K.Pradeepa Veerakumari¹ , H.M. Aruna²

1. Department of Statistics, Bharathiar University, Coimbatore, India.
2. Department of Statistics, Bharathiar University, Coimbatore, India.

Section:Research Paper, Product Type: Isroset-Journal
Vol.5 , Issue.3 , pp.79-83, Jun-2018

CrossRef-DOI:   https://doi.org/10.26438/ijsrmss/v5i3.7983

Online published on Jun 30, 2018

Copyright © K.Pradeepa Veerakumari, H.M. Aruna . This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
 

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Abstract :
Conventional Economic Order Quantity model tacitly assumes that the all items received are perfect. But, however, in practice, the items received may be imperfect. Inspection process helps to identify the defective items. 100% inspection is not feasible when the testing involved is destructive and costly. Acceptance sampling plan provides fool-proof solution to the problem. It is a trade-off between 100% inspection and zero inspection. Based on the above conditions, this paper incorporates the Economic Ordering Quantity model with permissible delay in payments and single sampling plan by attributes when the inspection requires destructive testing. Mathematical models are developed to characterize the scenario. Inspection errors are also included in the model. A hypothetical example is illustrated to validate the results in the proposed paper.

Key-Words / Index Term :
Economic-Order Quantity; Single Sampling plan; Inspection errors; Trade-credit; Destructive testing

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