An EPQ model for an imperfect production system with rework and shortages

C. Krishnamoorthi · S. Panayappan

41 citations0/0 files storedInternational Journal of Operational Research

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Supply Chain and Inventory Management Management and Optimization Techniques Sustainable Supply Chain Management

Abstract

An Economic Production Quantity (EPQ) model is commonly used by practitioners in the fields of production and inventory management. The common assumptions in this model are that all units produced are perfect and shortages are not allowed. But, in a real situation the defective items will be produced in each cycle of production and shortages and scrap are possible. Hence, the defective items cannot be ignored in the production process. Rework process is necessary to convert those defective into finished goods. In this paper, inventory models for a single stage production process are developed where defective items produced are reworked. Two models of rework processes are considered, an EPQ model without shortages and with shortages. A suitable mathematical model is developed and the optimal production lot size, which minimises the total cost is derived. The relevant model is built, solved. An illustrative example is provided and numerically verified. The validation of the result in this model was coded in Microsoft Visual Basic 6.0.

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References

1990How Many Parts to Make at Once 1986Economic Production Cycles with Imperfect Production Processes 1993Inventory Control and Management 2001Production lot sizing with the reworking of imperfect quality items produced 2004Optimal manufacturing batch size with rework process at a single-stage production system 2003Determining the optimal lot size for the finite production model with random defective rate, the rework process, and backlogging 1990Joint Lot Sizing and Inspection Policy in an EOQ Model with Random Yield 2002An optimal production run time with imperfect production processes and allowable shortages

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2021A Continuous Review Production-Inventory System with a Variable Preparation Time in a Fuzzy Random Environment 2019An EPQ model for deteriorating items with imperfect production, inspection errors, rework and shortages : a type-2 fuzzy approach 2013Production inventory model with reworking of imperfect production, scrap and shortages 2024Investigation of a Fuzzy Production Inventory Model with Carbon Emission using Sign Distance Method 2021

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