• STATISTICAL QUALITY CONTROL OF MULTI-ITEM EOQ MODEL WITH VARYING LEADING TIME VIA LAGRANGE METHOD

Abstract

The goal of this paper is to confirm that the production process is in control using statistical quality control process with subgroup ranges. The analytical solution of the economic order quantity model of multiple items with varying leading time using Lagrangian multipliers is derived. The varying leading time crashing cost is considered to be continuous function of leading time. The model is restricted to the budget inventory investment. The optimal order quantity is deduced as a decision variable. Finally the model is illustrating by applied example and the average of the subgroup ranges approach is used to confirm that the production process is in control.