Integrated dynamic single item lot-sizing and quality inspection planning

This paper proposes an integrated model for single item dynamic lot-sizing problem and Quality Inspection Planning (QIP). The objective is to provide a model of production planning that takes into account a targeted level of outgoing quality or an Acceptable quality level (AQL) when the manufacturing system inherently generates a proportion of defectives that increases significantly when the system switches from the in-control state to the out-of-control state. The average outgoing quality of each period of time of the planning horizon is bounded as a function of the inspection capacity. The effects of integrating QIP are analysed and discussed through several experiments representing different quality control system’s parameters, i.e. inspection capacity, inspection cost and AQL. The simulation results show that it is very important to take into account the inspection process into production planning decisions. This study will help the decision-makers to negotiate service levels or react properly to given customer quality requirements based on cost and lead time parameters in addition to their process characteristics in terms of capability and stability.

[1]  Meir J. Rosenblatt,et al.  Economic Production Cycles with Imperfect Production Processes , 1986 .

[2]  Stéphane Dauzère-Pérès,et al.  Single-item dynamic lot-sizing problems: An updated survey , 2017, Eur. J. Oper. Res..

[3]  W. M. Chan,et al.  A new EPQ model: integrating lower pricing, rework and reject situations , 2003 .

[4]  Urpo Moisio,et al.  Inventory control and quality system requirements--a case study , 1993 .

[5]  Mohamad Y. Jaber,et al.  Lot sizing for an imperfect production process with quality corrective interruptions and improvements, and reduction in setups , 2006, Comput. Ind. Eng..

[6]  Moutaz Khouja The use of minor setups within production cycles to improve product quality and yield , 2005, Int. Trans. Oper. Res..

[7]  Rehman Akhtar,et al.  Impact of random defective rate on lot size focusing work-in-process inventory in manufacturing system , 2017 .

[8]  I. Djamaludin,et al.  Quality control through lot sizing for items sold with warranty , 1994 .

[9]  G Keller,et al.  Impact of investing in quality improvement on the lot size model , 1988 .

[10]  W. Zangwill A Backlogging Model and a Multi-Echelon Model of a Dynamic Economic Lot Size Production System---A Network Approach , 1969 .

[11]  Stanley B. Gershwin,et al.  Integrated quality and quantity modeling of a production line , 2005, OR Spectr..

[12]  Michel Gendreau,et al.  A cost minimisation model for joint production and maintenance planning under quality constraints , 2017 .

[13]  Abraham Mehrez,et al.  An Overview of Representative Research of the Relationships Between Quality and Inventory , 1998 .

[14]  Shey-Huei Sheu,et al.  Optimal lot sizing for products sold under free-repair warranty , 2003, Eur. J. Oper. Res..

[15]  Mohamed Ben-Daya,et al.  Optimal lot-sizing, quality improvement and inspection errors for multistage production systems , 2003 .

[16]  Saeed Zolfaghari,et al.  A review of the extensions of a modified EOQ model for imperfect quality items , 2011 .

[17]  Meir J. Rosenblatt,et al.  Optimal inspection and ordering policies for products with imperfect quality , 1985 .

[18]  Stéphane Dauzère-Pérès,et al.  Single item lot sizing problems , 2006, Eur. J. Oper. Res..

[19]  Mohamed Ben-Daya,et al.  Integrated models in production planning, inventory, quality, and maintenance , 2001 .

[20]  Ruey Huei Yeh,et al.  Optimal lot size and inspection policy for products sold with warranty , 2006, Eur. J. Oper. Res..

[21]  R. W. Grubbström,et al.  A century of evolution from Harris׳s basic lot size model: Survey and research agenda , 2014 .

[22]  Hau L. Lee,et al.  Lot sizing to reduce capacity utilization in a production process with defective items, process corrections, and rework , 1992 .

[23]  David Lemoine,et al.  Integrated Single Item Lot-Sizing and Quality Inspection Planning , 2016 .

[24]  Stefan Voß,et al.  Dynamic lot-sizing with rework of defective items and minimum lot-size constraints , 2016 .

[25]  Stéphane Dauzère-Pérès,et al.  A Lagrangian heuristic for capacitated single item lot sizing problems , 2015, 4OR.

[26]  Xin Zhang,et al.  Joint lot sizing and inspection policy in an EOQ model with random yield , 1990 .

[27]  David F. Pyke,et al.  Inventory and Production Management in Supply Chains , 2016 .

[28]  Ruud H. Teunter,et al.  Dynamic lot sizing with product returns and remanufacturing , 2006 .

[29]  Tullio Tolio,et al.  PERFORMANCE EVALUATION OF PRODUCTION SYSTEMS MONITORED BY STATISTICAL PROCESS CONTROL AND OFF-LINE INSPECTIONS , 2006 .

[30]  M'Hammed Sahnoun,et al.  Quality control planning to prevent excessive scrap production , 2014 .

[31]  Evan L. Porteus Optimal Lot Sizing, Process Quality Improvement and Setup Cost Reduction , 1986, Oper. Res..

[32]  Harvey M. Wagner,et al.  Dynamic Version of the Economic Lot Size Model , 2004, Manag. Sci..