EFFECTS OF LEARNING ON THE ECONOMIC ORDERING POLICIESFOR DEFECTIVE ITEMS UNDER FUZZY ENVIRONMENT WITH PERMISSIBLE DELAY IN PAYMENTS

Abstract

The phenomenon of learning canand has been implemented in several distinct disciplines such as environmental protection
techniques, manufacturing processes as well as business transactions. As a matter of fact, learning effect is a phenomenon which
occurs almost every where and enables the employees to perform new tasks with better performance after fluent repititons over a
course of time. The learning effect acts as a considerable function for cost reduction. It consists of perfect and imperfect quality
item’s severance from the lot and instantly selling them at different prices. This paper is an adjunct of the commendable work by
Jaggi et al.(2013) which considers learning in holding costs and percentage of defective items, follows the learning curve effects
underthe fuzzy environment and in addition focuses on proving the concreteness of the fact, that the percentage of defective
items together with the holding costs follow the learning effect. In obedience with the economic order quantity (EOQ) model,
the ordered lot has 100% perfect items, but this is only suppositional. On contemplation and practical analysis, we have arrived
to learn that some lots possess defective items because of process retrogression and other such factors.This research paper
refines the economic order quantity model in the context that there are defective items present in each ordered lot confirmed
after initial inspection and shortages are allowed under trade credit financingin accordance with the learning effect. The
defective items are separated from the considered lot through vigilant inspection and are sold again at a fixed decisive cost price.
Conclusively, we de-fuzzify the total profit functions using the triangular method, and for verification of the same, numerical
examples and sensitive analysis have been presented in this paper for a clear understanding.