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Optimal replenishment policy for imperfect quality EMQ model with rework and backlogging

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  • Singa Wang Chiu

Abstract

This paper derives the optimal replenishment policy for imperfect quality economic manufacturing quantity (EMQ) model with rework and backlogging. The classic EMQ model assumes that all items produced are of perfect quality. However, in real‐life manufacturing settings, generation of imperfect quality items is almost inevitable. In this study, a random defective rate is assumed. All items produced are inspected and the defective items are classified as scrap and repairable. A rework process is involved in each production run when regular manufacturing process ends, and a rate of failure in repair is also assumed. Unit disposal cost and unit repairing and holding costs are included in our mathematical modelling and analysis. The renewal reward theorem is employed in this study to cope with the variable cycle length. The optimal replenishment policy in terms of lot‐size and backlogging level that minimizes expected overall costs for the proposed imperfect quality EMQ model is derived. Special cases of the model are identified and discussed. Numerical example is provided to demonstrate its practical usage. Copyright © 2006 John Wiley & Sons, Ltd.

Suggested Citation

  • Singa Wang Chiu, 2007. "Optimal replenishment policy for imperfect quality EMQ model with rework and backlogging," Applied Stochastic Models in Business and Industry, John Wiley & Sons, vol. 23(2), pages 165-178, March.
    • Handle: RePEc:wly:apsmbi:v:23:y:2007:i:2:p:165-178
    DOI: 10.1002/asmb.664
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    Cited by:

    1. Nita H. Shah & Dushyantkumar G. Patel & Digeshkumar B. Shah, 2018. "EPQ model for returned/reworked inventories during imperfect production process under price-sensitive stock-dependent demand," Operational Research, Springer, vol. 18(2), pages 343-359, July.
    2. Waqas Ahmed & Muhammad Jalees & Muhammad Omair & Zainab Mukhtar & Muhammad Imran, 2022. "An inventory management for global supply chain through reworking of defective items having positive inventory level under multi-trade-credit-period," Annals of Operations Research, Springer, vol. 315(1), pages 1-28, August.
    3. Chiu, Singa Wang, 2008. "Production lot size problem with failure in repair and backlogging derived without derivatives," European Journal of Operational Research, Elsevier, vol. 188(2), pages 610-615, July.
    4. 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.

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