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Production lot sizing with rework and fixed quantity deliveries

Singa Wang Chiu ; Department of Business Administration, Chaoyang University of Technology, Gifong East Road, Wufong, Taichung 413, TAIWAN
Yuan-Shyi Peter Chiu ; Department of Industrial Engineering, Chaoyang University of Technology, Gifong East Road, Wufong, Taichung 413, TAIWAN
Li-Wen Lin ; Department of Industrial Engineering, Chaoyang University of Technology, Gifong East Road, Wufong, Taichung 413, TAIWAN
Yi-Chun Lin ; Department of Industrial Engineering, Chaoyang University of Technology, Gifong East Road, Wufong, Taichung 413, TAIWAN


Puni tekst: engleski pdf 198 Kb

str. 23-30

preuzimanja: 82

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Sažetak

This paper is concerned with determination of the optimal lot size for an economic production quantity (EPQ) model with the reworking of random defective items and fixed quantity multiple deliveries. Classic EPQ model assumes continuous issuing policy for satisfying product demand and perfect quality production for all items produced. However, in real life vendor-buyer integrated production-inventory system, multi-delivery policy is used practically in lieu of the continuous issuing policy and generation of defective items during production run is inevitable. In this study, all nonconforming items produced are considered to be repairable and are reworked in each cycle when regular production ends. The finished items can only be delivered to customers if the whole lot is
quality assured at the end of the rework. Fixed quantity multiple installments of the finished batch are delivered to customers at a fixed interval of time. The long-run average integrated cost function per unit time is derived. A closed-form optimal batch size solution to the problem is obtained. A numerical example demonstrates its practical usage.

Ključne riječi

production lot sizing; rework; multiple deliveries; EPQ model; inventory

Hrčak ID:

185002

URI

https://hrcak.srce.hr/185002

Datum izdavanja:

31.1.2012.

Posjeta: 334 *