Optimal batch quantity models for a lean production system with in-cycle rework and scrap

Pablo Biswas · Bhaba R. Sarker

85 citations0/0 files storedInternational Journal of Production Research

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

Abstract

In a manufacturing system, reworking of the defectives and management of waste or scrap are important issues that call for immediate attention to meet the basic objectives and requirements for lean production system. This paper deals with a manufacturing process where finished goods are occasionally produced along with undesirable defective items and scrap. As the system is not always perfect, some scrap is produced during the manufacturing and/or rework processes. A rework process is necessary to correct the defective items into good finished products. The manufacturing process considered in this research deals with the process of rework that is performed ‘within’ the cycle. Also, three types of scrap detection scenarios are considered: (i) detection ‘before’ rework, (ii) detection ‘during’ rework, and (iii) detection ‘after’ rework. In order to avoid shortage of finished products due to scrap production, finished-product buffers have been considered to fulfil the customers’ timely demand. The required finished products for these buffers are ordered from different suppliers. Based on the observations in shop floors, a number of inventory models are developed for a single-stage production process wherein defective items are reworked, and scraps are detected and discarded during entire process. For the stated detection procedures, the total cost functions for a single-stage imperfect manufacturing system are developed with 100% inspection to find the optimum operational policy for manufacturing batch sizes and economic storage of inventories. Numerical examples are used to demonstrate these models, and an analysis is performed to study the sensitivity of different system parameters on several measures of performance.

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References

1998Toyota production system: beyond large-scale production 2000Economic production quantity model for items with imperfect quality 1986Economic Production Cycles with Imperfect Production Processes 2004Economic ordering quantity models for items with imperfect quality 2004Optimal manufacturing batch size with rework process at a single-stage production system 2006An economic order quantity model with defective items and shortages 2003A new EPQ model: integrating lower pricing, rework and reject situations 2006Optimal batch sizing in a multi-stage production system with rework consideration

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2011Maximising profits for an EPQ model with unreliable machine and rework of random defective items 2012Three-layer supply chain – A production-inventory model for reworkable items 2019Quality and flexibility performance trade-offs between lean and agile manufacturing firms in the automotive industry 2015Production lot sizing with quality screening and rework 2012A production quantity model for imperfect quality items with shortage and screening constraint

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