An EPQ Model for Deteriorating Production System and Items with Rework

This paper investigates the economic production quantity model jointly considering product deterioration and a deteriorating production system with rework. In this imperfect deteriorating production system, not only does the machine produce defective product but also the machine is subjected to quality deterioration. To be more specific, the defective rate increases at certain time intervals. The defects produced are stored until the end of normal production process. Then they are reworked with extra cost to restore their quality and regarded as perfect product. The main objective is to minimize the total cost per unit product by determining the optimal combination of production run time and backlog quantity. Numerical experiments are carried out to illustrate the behavior of the inventory and show the impact of different parameters on the model. Discussion and conclusions are made at the end of the paper.

[1]  C M Hinckley,et al.  Defining the best quality-control systems by design and inspection. , 1997, Clinical chemistry.

[2]  Angappa Gunasekaran,et al.  An integrated production-inventory-marketing model for deteriorating items , 1995 .

[3]  S. K. Goyal,et al.  Recent trends in modeling of deteriorating inventory , 2001, Eur. J. Oper. Res..

[4]  Ruud H. Teunter,et al.  Lot-sizing for a single-stage single-product production system with rework of perishable production defectives , 2003, OR Spectr..

[5]  Izak Duenyas,et al.  Integrated maintenance and production control of a deteriorating production system , 2002 .

[6]  Allen H. Tai.  Economic production quantity models for deteriorating/imperfect products and service with rework , 2013, Comput. Ind. Eng..

[7]  Prakash L. Abad,et al.  Optimal pricing and lot-sizing under conditions of perishability, finite production and partial backordering and lost sale , 2003, Eur. J. Oper. Res..

[8]  Karl Inderfurth,et al.  Lotsizing in a Production System with Rework and Product Deterioration , 2005, OR.

[9]  Hui-Ming Wee,et al.  Economic production lot size for deteriorating items taking account of the time-value of money , 1999, Comput. Oper. Res..

[10]  Leopoldo Eduardo Cárdenas-Barrón,et al.  Economic production quantity with rework process at a single-stage manufacturing system with planned backorders , 2009, Comput. Ind. Eng..

[11]  G. Ozdemir,et al.  An economic order quantity model with defective items and shortages , 2007 .

[12]  Shib Sankar Sana,et al.  A mathematical model on EPQ for stochastic demand in an imperfect production system , 2013 .

[13]  Biswajit Sarkar,et al.  A production-inventory model with probabilistic deterioration in two-echelon supply chain management , 2013 .

[14]  Y. Chiu.  Determining the optimal lot size for the finite production model with random defective rate, the rework process, and backlogging , 2003 .

[15]  B. Sarkar,et al.  An economic production quantity model with random defective rate, rework process and backorders for a single stage production system , 2014 .

[16]  Singa Wang Chiu,et al.  Combining an alternative multi-delivery policy into economic production lot size problem with partial rework , 2012, Expert Syst. Appl..

[17]  Leopoldo Eduardo Cárdenas-Barrón,et al.  An improved solution to the replenishment policy for the EMQ model with rework and multiple shipments , 2013 .

[18]  Hong-Dar Lin,et al.  Numerical method for determination of the optimal lot size for a manufacturing system with discontinuous issuing policy and rework , 2011 .

[19]  Hui-Ming Wee,et al.  Economic production lot size model for deteriorating items with partial back-ordering , 1993 .

[20]  David W. Pentico,et al.  The deterministic EPQ with partial backordering: A new approach , 2009 .

[21]  Leopoldo Eduardo Cárdenas-Barrón,et al.  The economic production quantity (EPQ) with shortage derived algebraically , 2001 .

[22]  K. S. Chaudhuri,et al.  Production, Manufacturing and Logistics An EOQ model with ramp type demand rate, time dependent deterioration rate, unit production cost and shortages , 2006 .

[23]  Gary C. Lin,et al.  Economic lot sizing for an imperfect production system subject to random breakdowns , 2006 .

[24]  Fred Raafat,et al.  Survey of Literature on Continuously Deteriorating Inventory Models , 1991 .

[25]  Yuan-Shyi Peter Chiu,et al.  Optimal run time for EPQ model with scrap, rework and stochastic breakdowns: A note , 2014 .

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

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