Effects of imperfect products on lot sizing with work in process inventory

The economic production quantity (EPQ) is one of the most widely known inventory control models that can be regarded as the generalized form of the Economic Order Quantity. However, the model is built on an unrealistic assumption that all the produced items need to be of perfect quality. Also, the introduction of work in process, WIP, as part of the inventory has been of lesser concern in developing inventory models. This paper attempts to develop the economic production quantity considering work in process inventory and manufacturing imperfect products that may be either reworkable or non-reworkable. The non-reworkable imperfect products are sold at a reduced price. This paper introduces a new model for this problem.

[1]  Leopoldo Eduardo Cárdenas-Barrón.  On optimal batch sizing in a multi-stage production system with rework consideration , 2009, Eur. J. Oper. Res..

[2]  P. A. Hayek,et al.  Production lot sizing with the reworking of imperfect quality items produced , 2001 .

[3]  B. Maddah,et al.  Lot sizing with random yield and different qualities , 2009 .

[4]  Mohamed Ben-Daya,et al.  Integrated inventory control and inspection policies with deterministic demand , 2006, Comput. Oper. Res..

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

[6]  Bhaba R. Sarker,et al.  Optimal batch sizing in a multi-stage production system with rework consideration , 2008, Eur. J. Oper. Res..

[7]  M. N. Gopalan,et al.  Expected number analysis of a two-server queueing network subject to inter-stage inspection and rework , 1995, Comput. Oper. Res..

[8]  Bhaba R. Sarker,et al.  Optimal manufacturing batch size with rework process at a single-stage production system , 2004, Comput. Ind. Eng..

[9]  W. Hsu,et al.  EOQ model for imperfective items under a one-time-only discount , 2009 .

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

[11]  David F. Pyke,et al.  Inventory management and production planning and scheduling , 1998 .

[12]  S. Papachristos,et al.  Economic ordering quantity models for items with imperfect quality , 2006 .

[13]  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..

[14]  Leopoldo Eduardo Cárdenas-Barrón.  On optimal manufacturing batch size with rework process at single-stage production system , 2007, Comput. Ind. Eng..

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

[16]  L. Cárdenas-Barrón.  Observation on: "Economic production quantity model for items with imperfect quality" [Int. J. Production Economics 64 (2000) 59-64] , 2000 .

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

[18]  Haji Rasoul,et al.  OPTIMAL BATCH PRODUCTION FOR A SINGLE MACHINE SYSTEM WITH ACCUMULATED DEFECTIVES AND RANDOM RATE OF REWORK , 2010 .

[19]  Leopoldo Eduardo Cárdenas-Barrón.  Optimal manufacturing batch size with rework in a single-stage production system - A simple derivation , 2008, Comput. Ind. Eng..

[20]  R L Schwaller.  EOQ UNDER INSPECTION COSTS , 1988 .

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

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

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

[24]  T. Er.  Lot sizing in group technology production systems , 1984 .