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Note---The Impact of Inspection Delay on Process and Inspection Lot Sizing

Author

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  • Evan L. Porteus

    (Graduate School of Business, Stanford University, Stanford, California 94305)

Abstract

Models in which process quality and lot sizing interact have recently been developed. Lot sizes should be reduced to compensate for poor quality if no effective inspection is possible. This note introduces an inspection delay time, measured in units produced after an inspection is made until results are known. If the inspection delay is negligible, then the problem reduces essentially to two separate lot sizing problems: the classical EOQ lot sizing problem and an inspection lot sizing problem. If the delay is great, then only one inspection should be made and the lot size is as given by Porteus, and Rosenblatt and Lee. This note seeks the optimal production and inspection lot sizes for the full spectrum of inspection delays. The impact of the results is illustrated numerically. The value of automated defect control (with 100% inspection and immediate production stoppage upon detection of a defect) is discussed.

Suggested Citation

  • Evan L. Porteus, 1990. "Note---The Impact of Inspection Delay on Process and Inspection Lot Sizing," Management Science, INFORMS, vol. 36(8), pages 999-1007, August.
  • Handle: RePEc:inm:ormnsc:v:36:y:1990:i:8:p:999-1007
    DOI: 10.1287/mnsc.36.8.999
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    Citations

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    Cited by:

    1. Yang Dong & Kefeng Xu & Sining Song, 2014. "Contracting for Quality in a Multiple-Level Global Supply Chain," Working Papers 0205mss, College of Business, University of Texas at San Antonio.
    2. Vickson, Raymond G. & Hassini, Elkafi, 2006. "Lot streaming for quality control in two-stage batch production," European Journal of Operational Research, Elsevier, vol. 170(3), pages 824-843, May.
    3. Guu, Sy-Ming & Zhang, Alex X., 2003. "The finite multiple lot sizing problem with interrupted geometric yield and holding costs," European Journal of Operational Research, Elsevier, vol. 145(3), pages 635-644, March.
    4. Giri, B.C. & Dohi, T., 2007. "Inspection scheduling for imperfect production processes under free repair warranty contract," European Journal of Operational Research, Elsevier, vol. 183(1), pages 238-252, November.
    5. Borrero, J.S. & Akhavan-Tabatabaei, R., 2013. "Time and inventory dependent optimal maintenance policies for single machine workstations: An MDP approach," European Journal of Operational Research, Elsevier, vol. 228(3), pages 545-555.
    6. Shoshana Anily & Avraham Beja & Amit Mendel, 2002. "Optimal Lot Sizes with Geometric Production Yield and Rigid Demand," Operations Research, INFORMS, vol. 50(3), pages 424-432, June.
    7. W. C. Tsai & Neng-Hui Shih & Chih-Hsiung Wang, 2018. "The effects of inspection delay and restoration cost on the optimal inspection and production policy," OPSEARCH, Springer;Operational Research Society of India, vol. 55(1), pages 187-195, March.
    8. B C Giri & T Dohi, 2005. "Exact formulation of stochastic EMQ model for an unreliable production system," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 56(5), pages 563-575, May.
    9. Subba Rao, S. & Gunasekaran, A. & Goyal, S. K. & Martikainen, T., 1998. "Waiting line model applications in manufacturing," International Journal of Production Economics, Elsevier, vol. 54(1), pages 1-28, January.
    10. Shoshana Anily & Abraham Grosfeld-Nir, 2006. "An Optimal Lot-Sizing and Offline Inspection Policy in the Case of Nonrigid Demand," Operations Research, INFORMS, vol. 54(2), pages 311-323, April.
    11. Bendavid, Illana & Herer, Yale T., 2009. "Economic optimization of off-line inspection in a process that also produces non-conforming units when in control and conforming units when out of control," European Journal of Operational Research, Elsevier, vol. 195(1), pages 139-155, May.
    12. Abraham Grosfeld‐Nir & Eyal Cohen & Yigal Gerchak, 2007. "Production to order and off‐line inspection when the production process is partially observable," Naval Research Logistics (NRL), John Wiley & Sons, vol. 54(8), pages 845-858, December.
    13. Wright, CM & Mehrez, A, 1998. "An Overview of Representative Research of the Relationships Between Quality and Inventory," Omega, Elsevier, vol. 26(1), pages 29-47, February.
    14. S H Sheu & Y C Chen & W Y Wang & N H Shin, 2003. "Economic optimization of off-line inspection with inspection errors," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 54(8), pages 888-895, August.
    15. Kaijie Zhu & Rachel Q. Zhang & Fugee Tsung, 2007. "Pushing Quality Improvement Along Supply Chains," Management Science, INFORMS, vol. 53(3), pages 421-436, March.
    16. T W Sloan, 2004. "A periodic review production and maintenance model with random demand, deteriorating equipment, and binomial yield," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 55(6), pages 647-656, June.
    17. S. Andrew Starbird, 1997. "Acceptance sampling, imperfect production, and the optimality of zero defects," Naval Research Logistics (NRL), John Wiley & Sons, vol. 44(6), pages 515-530, September.
    18. Abraham Grosfeld-Nir & Yigal Gerchak & Qi-Ming He, 2000. "Manufacturing to Order with Random Yield and Costly Inspection," Operations Research, INFORMS, vol. 48(5), pages 761-767, October.
    19. Sy-Ming Guu & Chun-Yi Lin, 2018. "The multiple lot sizing problem of a serial production system with interrupted geometric yields, rigid demand and Pentico’s heuristic," Annals of Operations Research, Springer, vol. 269(1), pages 167-183, October.
    20. Yale T. Herer & Tzvi Raz, 2000. "Optimal Parallel Inspection for Finding the First Nonconforming Unit in a Batch---An Information Theoretic Approach," Management Science, INFORMS, vol. 46(6), pages 845-857, June.
    21. Stephen M. Gilbert & Hena M Bar, 1999. "The value of observing the condition of a deteriorating machine," Naval Research Logistics (NRL), John Wiley & Sons, vol. 46(7), pages 790-808, October.
    22. Wang, Wen-Ying & Sheu, Shey-Huei & Chen, Yan-Chun & Horng, Der-Juinn, 2009. "Economic optimization of off-line inspection with rework consideration," European Journal of Operational Research, Elsevier, vol. 194(3), pages 807-813, May.
    23. Kazaz, Burak & Sloan, Thomas W., 2013. "The impact of process deterioration on production and maintenance policies," European Journal of Operational Research, Elsevier, vol. 227(1), pages 88-100.

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