On a volume flexible inventory model for items with an imperfect production system

A mathematical model is developed for volume flexible production system taking into account the effect of imperfect quality products. At the start of the production of a lot, the whole system is adjusted so that the process is 'in-control' state and items produced are of acceptable quality. During high rate of production, the process shifts from the 'in-control' state to the 'out-of-control 'state. In the 'out-of-control' state, the quality of products deteriorates resulting in defective items. The demand rate of some defective items which are suitable for sale at reduced price is considered as a function of reduction rate of selling price. The proposed model is graphically illustrated with numerical examples and optimised by Mathematica Software. Sensitivity analysis is undertaken and various issues regarding the sale of imperfect quality products are discussed.

[1]  L. Cárdenas-Barrón,et al.  Note on: Economic production quantity model for items with imperfect quality – a practical approach , 2002 .

[2]  Meir J. Rosenblatt,et al.  Simultaneous determination of production cycle and inspection schedules in a production system , 1987 .

[3]  N. McClamroch,et al.  The drilling problem: A stochastic modeling and control example in manufacturing , 1987 .

[4]  Chih-Hsiung Wang.  The impact of a free-repair warranty policy on EMQ model for imperfect production systems , 2004, Comput. Oper. Res..

[5]  F. M. Gryna.  Quality planning and analysis , 1970 .

[6]  O. Felix Offodile,et al.  Evaluating the effect of speed and payload on robot repeatability , 1991 .

[7]  Avraham Shtub,et al.  Strategic allocation of inspection effort in a serial, multi-product production system , 1987 .

[8]  Meir J. Rosenblatt,et al.  A Production and Maintenance Planning Model with Restoration Cost Dependent on Detection Delay , 1989 .

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

[10]  Abraham Mehrez,et al.  Economic Production Lot Size Model with Variable Production Rate and Imperfect Quality , 1994 .

[11]  C. H. Kim,et al.  An optimal production run length in deteriorating production processes , 1999 .

[12]  Arnoldo C. Hax,et al.  Production and inventory management , 1983 .

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

[14]  Karl Inderfurth,et al.  Planning and control of rework in the process industries: A review , 2002 .

[15]  Hung-Chi Chang,et al.  An application of fuzzy sets theory to the EOQ model with imperfect quality items , 2004, Comput. Oper. Res..

[16]  Shey-Huei Sheu,et al.  Simultaneous determination of the optimal production-inventory and product inspection policies for a deteriorating production system , 2001, Comput. Oper. Res..

[17]  M. K. Salameh,et al.  Economic production quantity model for items with imperfect quality , 2000 .

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

[19]  Shoshana Anily.  Single-machine lot-sizing with uniform yields and rigid demands: robustness of the optimal solution , 1995 .

[20]  T.C.E. Cheng,et al.  An Economic Order Quantity Model with Demand-Dependent Unit Production Cost and Imperfect Production Processes , 1991 .

[21]  Kamran Moinzadeh,et al.  A continuous‐review inventory model with constant resupply time and defective items , 1987 .

[22]  Mohamed Ben-Daya,et al.  Note: The economic manufacturing lot-sizing problem with imperfect production processes: Bounds and optimal solutions , 1998 .

[23]  Abraham Seidmann,et al.  Optimizing Processing Rates for Flexible Manufacturing Systems , 1991 .

[24]  Sheng-Tsaing Tseng,et al.  Optimal production run length for products sold with warranty , 2000, Eur. J. Oper. Res..

[25]  Kuo-Lung Hou,et al.  An optimal production run time with imperfect production processes and allowable shortages , 2003, Comput. Oper. Res..

[26]  Timothy L. Urban.  Deterministic inventory models incorporating marketing decisions , 1992 .

[27]  W. K. Chiu,et al.  Economic Design of Attribute Control Charts , 1975 .

[28]  Eugene L. Grant,et al.  Statistical Quality Control , 1946 .

[29]  Ramon Bakerjian,et al.  Tool and Manufacturing Engineers Handbook , 1989 .