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# AN ECONOMIC ORDER QUANTITY [EOQ] MODEL WITH DEFECTIVE ITEMS AND SHORTAGES

Prepared By Naveen Kumar (O4310402709) Vivek Gupta (06510402709) CSE 2nd Year, Session - 2009-13

and backorder. EOQ . inventory holding.WHAT IS EOQ? EOQ stands for Economic Order Quantity. model is a technique to find out optimum order quantity generally by considering cost of procurement.

assumption may not be valid for most of the production processes because of process deterioration or other factors. This .ASSUMPTIONS OF EOQ MODEL The fundamental assumption of an EOQ model is that 100% of items in an ordered lot are perfect.

It . is assumed that 100% of each lot contains some defective items which are collection of imperfect quality and scrap items.OVERVIEW OF MODEL This project develops an EOQ model for that each ordered lot contains some defective items and shortages backordered.

EXAMPLES OF EOQ MODELS Rosenblatt Kim & Lee (1986) & Hong (1999) & Jaber (2000) Hou (2003) & Salameh (2001) Salameh Hayek Chung & Chan et al. (2003) .

NET framework. The The interface of model is prepared in .IMPLEMENTATION OF MODEL This is a mathematical model which is implemented using Genetic Algorithm . . coding of model is done in C#.

GENETIC ALGORITHM genetic algorithm is a method for solving optimization problems that is based on1. Natural selection. The process that drives biological evolution. The . 2.

OVERVIEW TO GENETIC ALGORITHM The genetic algorithm repeatedly modifies a population of individual solutions. At . the genetic algorithm selects individuals at random from the current population to be parents and uses them produce the children for the next generation. each step.

Apply random changes to a parent to form new child.OPERATORS OF GENETIC ALGORITHM Selection Select the parents from initial population based on their fitness value. Combine two parents to form a new child. Crossover Mutuation .

p)x z D z 1 + py py z1 D xA D Time -w t1 t2 t3 t .BEHAVIOR OF MODEL AT INVENTORY LEVEL Inventory level y [1 .

EQUATIONS OPTIMIZED .