JOINT LOT SIZING AND INSPECTION POLICY IN AN EOQ MODEL WITH RANDOM YIELD

We study a joint lot sizing and inspection policy under an EOQ model where a random proportion of units are defective. Those units can be discovered only through costly inspections. The problem is thus bivariate:both lot size and fraction to inspect are to be chosen. We first analyze a model in which the only penalty for uninspected defectives is financial, and then consider a model where defective units cannot be used and thus must be replaced by non-defective ones. © 1990 Taylor & Francis Group, LLC.