An EPQ Model for Deteriorating Production System and Items with Rework

N. Li · Felix T.S. Chan · Sai‐Ho Chung · Allen H. Tai

20 citations0/0 files storedMathematical Problems in Engineering

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Supply Chain and Inventory Management Reliability and Maintenance Optimization Management and Optimization Techniques

Abstract

This paper investigates the economic production quantity model jointly considering product deterioration and a deteriorating production system with rework. In this imperfect deteriorating production system, not only does the machine produce defective product but also the machine is subjected to quality deterioration. To be more specific, the defective rate increases at certain time intervals. The defects produced are stored until the end of normal production process. Then they are reworked with extra cost to restore their quality and regarded as perfect product. The main objective is to minimize the total cost per unit product by determining the optimal combination of production run time and backlog quantity. Numerical experiments are carried out to illustrate the behavior of the inventory and show the impact of different parameters on the model. Discussion and conclusions are made at the end of the paper.

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References

2001Recent trends in modeling of deteriorating inventory 1991Survey of Literature on Continuously Deteriorating Inventory Models 2009Economic production quantity with rework process at a single-stage manufacturing system with planned backorders 2012A production-inventory model with probabilistic deterioration in two-echelon supply chain management 1993Economic production lot size model for deteriorating items with partial back-ordering 2006An economic order quantity model with defective items and shortages 1994Economic Production Lot Size Model with Variable Production Rate and Imperfect Quality 2003Determining the optimal lot size for the finite production model with random defective rate, the rework process, and backlogging

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2019An EPQ inventory model considering an imperfect production system with probabilistic demand and collaborative approach 2017A computational approach to economic production quantity model for perishable products with backordering shortage and stock-dependent demand 2020A Three-Phased Perishable Inventory Simulation Model with Quality Decrease Consideration

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