Economic Production Quantity Model with Scrapped Items and Limited Production Capacity

A A Taleeizadeh · Amir Abbas Najafi · Seyed Taghi Akhavan Niaki

44 citations0/0 files storedScientia Iranica

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Supply Chain and Inventory Management Management and Optimization Techniques Optimization and Mathematical Programming

Abstract

In this paper, an Economic Production Quantity (EPQ) model is studied, in which the production defective-rate follows either a uniform or a normal probability distribution. Shortages are allowed and take a backorder state, and the existence of only one machine causes a limited production capacity for the common cycle length of all products. The aim of this research is to determine the optimal production quantity of each product, such that the expected total cost including holding, shortage, production, setup and defective items cost is minimized. The mathematical model of the problem is derived, for which the objective function is proved to be convex. Then, a derivative approach is utilized to obtain the optimal solution. At the end, two numerical examples are provided to illustrate the practical usage of the proposed method.

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References

1986Economic Production Cycles with Imperfect Production Processes 2001Production lot sizing with the reworking of imperfect quality items produced 1991An Economic Order Quantity Model with Demand-Dependent Unit Production Cost and Imperfect Production Processes 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 1997Bounds for production lot sizing with machine breakdowns 2006Mathematical modeling for production system with backlogging and failure in repair

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