A note on the effect of inventory costs on product quality levels
本文指出企业在决定产品质量水平时，若忽略库存成本会导致次优决策，并证明考虑库存成本会减少生产批量，通过数值例子说明模型结果。
This note addresses a problem faced by an actual firm. The problem is to decide on the optimal level of product quality. In performing the economic analysis to determine product quality level, the firm considers revenue, production costs, and research and development costs. However, this note shows that ignoring inventory costs in the analysis will lead to suboptimal product quality levels. Also, including inventory costs in the analysis will lead to reduced production lot sizes. Numerical examples are used to illustrate the results of the model.