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An economic production quantity model for deteriorating items with multiple production setups and rework

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  • Widyadana, Gede Agus
  • Wee, Hui Ming

Abstract

Rework is one of the main issues in reverse logistic and green supply chain, since it can reduce production cost and environmental problem. Many researchers focus on developing rework model, but few of them developed model for deteriorating items. In this paper, we develop an economic production quantity (EPQ) model for deteriorating items with rework. In one cycle, production facility can produce items in m production setups and one rework setup, (m, 1) policy. An example and sensitivity analysis is shown to illustrate the model. The results show that the deteriorating rate affects the optimal cost per unit time, but the effect is not significant. The parameters that significantly affect the optimal total cost per unit time are the serviceable holding cost, the production setup cost and the demand rate.

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  • Widyadana, Gede Agus & Wee, Hui Ming, 2012. "An economic production quantity model for deteriorating items with multiple production setups and rework," International Journal of Production Economics, Elsevier, vol. 138(1), pages 62-67.
    • Handle: RePEc:eee:proeco:v:138:y:2012:i:1:p:62-67
    DOI: 10.1016/j.ijpe.2012.02.025
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    5. Chayanika Rout & Ravi Shankar Kumar & Debjani Chakraborty & Adrijit Goswami, 2019. "An EPQ model for deteriorating items with imperfect production, inspection errors, rework and shortages : a type-2 fuzzy approach," OPSEARCH, Springer;Operational Research Society of India, vol. 56(3), pages 657-688, September.
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    8. Peter Berling & Danja R. Sonntag, 2022. "Inventory control in production–inventory systems with random yield and rework: The unit‐tracking approach," Production and Operations Management, Production and Operations Management Society, vol. 31(6), pages 2628-2645, June.
    9. Xiao, Tiaojun & Xu, Tiantian, 2013. "Coordinating price and service level decisions for a supply chain with deteriorating item under vendor managed inventory," International Journal of Production Economics, Elsevier, vol. 145(2), pages 743-752.
    10. Al-Salamah, Muhammad, 2019. "Economic production quantity in an imperfect manufacturing process with synchronous and asynchronous flexible rework rates," Operations Research Perspectives, Elsevier, vol. 6(C).
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    13. Guchhait, Partha & Kumar Maiti, Manas & Maiti, Manoranjan, 2013. "Production-inventory models for a damageable item with variable demands and inventory costs in an imperfect production process," International Journal of Production Economics, Elsevier, vol. 144(1), pages 180-188.
    14. Pasandideh, Seyed Hamid Reza & Niaki, Seyed Taghi Akhavan & Nobil, Amir Hossein & Cárdenas-Barrón, Leopoldo Eduardo, 2015. "A multiproduct single machine economic production quantity model for an imperfect production system under warehouse construction cost," International Journal of Production Economics, Elsevier, vol. 169(C), pages 203-214.
    15. Tai, Allen H. & Xie, Yue & He, Wanhua & Ching, Wai-Ki, 2019. "Joint inspection and inventory control for deteriorating items with random maximum lifetime," International Journal of Production Economics, Elsevier, vol. 207(C), pages 144-162.
    16. Mubashir Hayat & Bashir Salah & Misbah Ullah & Iftikhar Hussain & Razaullah Khan, 2020. "Shipment Policy for an Economic Production Quantity Model Considering Imperfection and Transportation Cost," Sustainability, MDPI, vol. 12(21), pages 1-16, October.
    17. Yang, P.C. & Chung, S.L. & Wee, H.M. & Zahara, E. & Peng, C.Y., 2013. "Collaboration for a closed-loop deteriorating inventory supply chain with multi-retailer and price-sensitive demand," International Journal of Production Economics, Elsevier, vol. 143(2), pages 557-566.
    18. Waseem Sajjad & Misbah Ullah & Razaullah Khan & Mubashir Hayat, 2022. "Developing a Comprehensive Shipment Policy through Modified EPQ Model Considering Process Imperfections, Transportation Cost, and Backorders," Logistics, MDPI, vol. 6(3), pages 1-20, June.
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