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- Title
EPQ MODELS WITH A PRODUCTION RATE PROPORTIONAL TO THE POWER DEMAND RATE, REWORK PROCESS AND SCRAPPED ITEMS.
- Authors
Keshavarzfard, Razieh; Makui, Ahmad; Tavakkoli-Moghaddam, Reza; Taleizadeh, Ata Allah
- Abstract
Opposed to the basic EPQ assumption of producing all products with acceptable quality, in most of the production systems generating defective products is unavoidable. As in many real situations, we consider a firm, in which at the end of the replenishment period, some imperfect units detected by an inspection process, are reworked and others are disposed. The constant rate of demand is another usual assumption in conventional lot sizing models; however, it is not suitable for many real cases. Commonly customer demand changes with time following different kinds of demand patterns. Power demand pattern is used in this study due to its extensive applications in practice. Regarding these points, this work deals with a joint problem of demand having a power pattern, production rate pro rata with demand rate and rework process of defective items or removing them as scrapped items. It is assumed that a manufacturer may be faced with two scenarios: all imperfect units are recovered or a certain fraction of imperfect units are reworked and others are disposed. Setup, holding, backordering, inspection, production, rework and disposal costs are involved in the inventory system. An algorithm is presented to optimize total inventory cost and determine the best reorder point, lot size and scheduling period. A numerical analysis is carried out to illustrate the applications of the proposed models.
- Publication
International Journal of Industrial Engineering, 2019, Vol 26, Issue 2, p173
- ISSN
1072-4761
- Publication type
Academic Journal