An integrated EPQ model based on a control chart for an imperfect production process

Ershun Pan · Jin Yong Yao · Shuyi Wang · Ting Cang

63 citations0/0 files storedInternational Journal of Production Research

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Advanced Statistical Process Monitoring Supply Chain and Inventory Management Management and Optimization Techniques

Abstract

The notion of quality control is introduced into the classic economic production quantity (EPQ) model. Based on previous research, this paper contributes to an integrated EPQ model combining the concepts of statistical process control and maintenance. An imperfect production process involving three different conditions is considered. A control chart is adopted to monitor the whole process with Taguchi's loss function estimating the quality cost of each condition. A corresponding maintenance policy is planned for the machine depending on what condition it runs in. Thus the proposed EPQ model takes quality-related costs and maintenance-related costs into account other than storage costs and ordering costs already considered in the classic model. The objective of this model is to minimise the total expected production cost per production cycle while simultaneously determining the optimal parameters of control chart design, the interval between sampling, the sample size and the maintenance decision policy. The pattern search method is used to solve the problem using the MATLAB toolbox. In addition, a case study, sensitivity analysis and comparison analysis are presented to demonstrate the application of the model.

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References

1986Optimal Lot Sizing, Process Quality Improvement and Setup Cost Reduction 1990How Many Parts to Make at Once 2002An optimal production run time with imperfect production processes and allowable shortages 1984Economic Selection of Quality Manufactured Product 2000Effect of maintenance on the economic design of x-control chart 2004Optimization design of control charts based on Taguchi's loss function and random process shifts 1997Economic-statistical design of an adaptive chart

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