Original scientific paper
A multi-product FPR model with rework and an improved delivery policy
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 & Management, Chaoyang University of Technology, Gifong East Road, Wufong, Taichung 413, TAIWAN
Ting-Wei Li
; Department of Industrial Engineering & Management, Chaoyang University of Technology, Gifong East Road, Wufong, Taichung 413, TAIWAN
Hsin-Mei Chen
; Department of Industrial Engineering & Management, Chaoyang University of Technology, Gifong East Road, Wufong, Taichung 413, TAIWAN
Abstract
A multi-item finite production rate (FPR) model with rework and an improved delivery policy is examined in this paper. Unlike the classic FPR model whose purpose is to derive the most economic lot size for a single-product production system with perfect quality and a continuous issuing policy, this paper considers a production of multiple products on a single machine, rework of all nonconforming items produced, and a cost-reduction, multi-delivery policy. We extend the work of Chiu et al. [1] by incorporating an improved n+1 shipment policy into their model.
According to such a policy, one extra delivery of finished items is made during vendor’s production uptime to satisfy product demands during the period of vendor’s uptime and rework time. When the rest of the production lot is quality assured and the rework has been finished as well, n fixed-quantity installments of finished items are delivered to
customers. The objectives are to determine an optimal, common-production cycle time that minimizes the long-run average system cost per time unit, study the effects of rework and the improved delivery policy on the optimal production. Mathematical modelling and analysis is used to derive a closed-form, optimal, common-cycle time. Finally, practical usages of the obtained results are demonstrated by a numerical example.
Keywords
finite production rate model; multi-item system; common cycle time; rework; optimization; multidelivery
Hrčak ID:
185752
URI
Publication date:
31.3.2015.
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