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Innovative maintenance problem in a two-stage production-inventory system with imperfect processes

Author

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  • Rung-Hung Su

    (Fu Jen Catholic University)

  • Ming-Wei Weng

    (Chaoyang University of Technology)

  • Yung-Fu Huang

    (Chaoyang University of Technology)

Abstract

The specification of a product is frequently changed to satisfy new requirement from market buyers. To maintain market competitiveness, manufacturers must plan innovative production and sale strategies to achieve maximum benefit. This activity is known as innovative maintenance (IM). In this paper, we therefore consider a two-stage production-inventory model with replacement and imperfect component processes during which the components replacement is a common issue of IM. We then find the optimal production and sale strategies that minimize the total cost per unit time. An algorithm is proposed to find these optimal solutions. Finally, we quote two numerical examples from the Taiwan polyurethane industry to illustrate the proposed model and algorithm. Sensitivity analysis is also performed to obtain some managerial insights.

Suggested Citation

  • Rung-Hung Su & Ming-Wei Weng & Yung-Fu Huang, 2020. "Innovative maintenance problem in a two-stage production-inventory system with imperfect processes," Annals of Operations Research, Springer, vol. 287(1), pages 379-401, April.
    • Handle: RePEc:spr:annopr:v:287:y:2020:i:1:d:10.1007_s10479-019-03423-8
    DOI: 10.1007/s10479-019-03423-8
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    References listed on IDEAS

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    1. W. Pearn & R. Su & M. Weng & C. Hsu, 2011. "Optimal production run time for two-stage production system with imperfect processes and allowable shortages," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 19(4), pages 533-545, December.
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    3. Ata Allah Taleizadeh, 2018. "A constrained integrated imperfect manufacturing-inventory system with preventive maintenance and partial backordering," Annals of Operations Research, Springer, vol. 261(1), pages 303-337, February.
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    6. Chen, Sheng-Chih & Teng, Jinn-Tsair & Skouri, Konstantina, 2014. "Economic production quantity models for deteriorating items with up-stream full trade credit and down-stream partial trade credit," International Journal of Production Economics, Elsevier, vol. 155(C), pages 302-309.
    7. Sarker, Bhaba R. & Jamal, A.M.M. & Mondal, Sanjay, 2008. "Optimal batch sizing in a multi-stage production system with rework consideration," European Journal of Operational Research, Elsevier, vol. 184(3), pages 915-929, February.
    8. Darwish, M.A. & Ben-Daya, M., 2007. "Effect of inspection errors and preventive maintenance on a two-stage production inventory system," International Journal of Production Economics, Elsevier, vol. 107(1), pages 301-313, May.
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    Cited by:

    1. Arash Sepehri & Mohammad Reza Gholamian, 2023. "A green inventory model with imperfect items considering inspection process and quality improvement under different shortages scenarios," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(4), pages 3269-3297, April.
    2. Rung-Hung Su & Dong-Yuh Yang & He-Jhen Lin & Yu-Cheng Yang, 2023. "Estimating conservative profitability of a newsboy-type product with exponentially distributed demand based on multiple samples," Annals of Operations Research, Springer, vol. 322(2), pages 967-989, March.

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