Incorporating multi-delivery policy and quality assurance into economic production lot size problem

Yuan-Shyi Peter Chiu · Singa Wang Chiu · Chunyi Li · Chia-Kuan Ting

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

Abstract

This paper incorporates a multi-delivery policy and quality assurance into an imperfect economic production quantity (EPQ) model with scrap and rework. A portion of nonconforming items produced is considered to be scrap, while other is assumed to be repairable and is reworked in each cycle when regular production ends. Finished items can only be delivered to customers if whole lot is quality assured after rework. Fixed quantity multiple installments of finished batch are delivered by request to customers at a fixed interval of time. Expected integrated cost function per unit time is derived. A closed-form optimal batch size solution to the problem is obtained. Two special cases are examined and a numerical example given to demonstrate model’s practical usage.

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1999Inventory management and production planning and scheduling 1990How Many Parts to Make at Once 1986Economic Production Cycles with Imperfect Production Processes 1986A JOINT ECONOMIC‐LOT‐SIZE MODEL FOR PURCHASER AND VENDOR 1977An integrated inventory model for a single supplier-single customer problem 1995A one-vendor multi-buyer integrated inventory model 1991An Economic Order Quantity Model with Demand-Dependent Unit Production Cost and Imperfect Production Processes 2001Production lot sizing with the reworking of imperfect quality items produced

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2011Mathematical modeling for solving manufacturing run time problem with defective rate and random machine breakdown 2014Multi-Item EPQ Model with Scrap, Rework and Multi-Delivery using Common Cycle Policy 2011Determining replenishment lot size and shipment policy for an extended EPQ model with delivery and quality assurance issues 2022A Fuzzy Imperfect Production Inventory Model Based on Fuzzy Differential and Fuzzy Integral Method 2010An Algebraic Approach for Determining the Optimal Lot Size for EPQ Model with Rework Process

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