A Two-Warehouse Production Model with Quality Consideration

Himani Dem · S.R. Singh

9 citations0/0 files storedProcedia Engineering

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Supply Chain and Inventory Management Scheduling and Optimization Algorithms Optimization and Mathematical Programming

Abstract

The paper emphasizes on two warehouse manufacturing model for deteriorating items following time dependent demand pattern. Every manufacturing organization intends to produce perfect quality items. Due to long course of action, various types of difficulties concerning machinery capabilities, labor potential or facility from other resources may appear. Consequently, the systems shift from in-control state to out-of-control state which leads to the production of imperfect quality items. The produced lot can be screened at a cost and then separated defective items can be sold at reduced selling price. Using LIFO (last in first out) dispatching policy for model formulation, our objective is to determine the maximum total profit and the corresponding optimum decision variables. This problem is a constrained non-linear programming and hence a parameter-tuned Genetic Algorithm (GA) is implemented to solve it efficiently. The application of the model is illustrated by providing a numerical example and result is analyzed regarding the impact of various parameters on the proposed policy.

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References

1986Optimal Lot Sizing, Process Quality Improvement and Setup Cost Reduction 1986Economic Production Cycles with Imperfect Production Processes 2000Economic production quantity model for items with imperfect quality 2002Note on: Economic production quantity model for items with imperfect quality–a practical approach 1991An Economic Order Quantity Model with Demand-Dependent Unit Production Cost and Imperfect Production Processes 1987A deterministic order level inventory model for deteriorating items with two storage facilities 2009An economic production lot size model in an imperfect production system 2003Two-warehouse inventory models for deteriorating items with shortages under inflation

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