IDEAS home Printed from
   My bibliography  Save this article

Optimal run time for EPQ model with scrap, rework and stochastic breakdowns: A note


  • Chiu, Yuan-Shyi Peter
  • Chang, Huei-Hsin


In a recent study [Chiu et al., 2007. Determining the optimal run time for EPQ model with scrap, rework, and stochastic breakdowns. European Journal of Operational Research 180, 664–676], the perfect rework of nonconforming items was assumed in a production system that is subject to stochastic breakdown and random defective rate. However, in most real-life manufacturing systems emphasizing on quality assurance, the perfect rework of nonconforming products may not always be possible as a result of various factors. Therefore, in order to enhance the practical usages of their research outcome, this paper incorporates failure in rework factor into Chiu et al.'s model, derives the optimal replenishment run time for the amended model, and investigates the effect of the failure in rework on the optimal operating policy through this exact model.

Suggested Citation

  • Chiu, Yuan-Shyi Peter & Chang, Huei-Hsin, 2014. "Optimal run time for EPQ model with scrap, rework and stochastic breakdowns: A note," Economic Modelling, Elsevier, vol. 37(C), pages 143-148.
  • Handle: RePEc:eee:ecmode:v:37:y:2014:i:c:p:143-148
    DOI: 10.1016/j.econmod.2013.11.006

    Download full text from publisher

    File URL:
    Download Restriction: Full text for ScienceDirect subscribers only

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    1. Roy, Arpita & Sana, Shib Sankar & Chaudhuri, Kripasindhu, 2012. "Optimal replenishment order for uncertain demand in three layer supply chain," Economic Modelling, Elsevier, vol. 29(6), pages 2274-2282.
    2. Chiu, Yuan-Shyi Peter & Ting, Chia-Kuan, 2010. "A note on "Determining the optimal run time for EPQ model with scrap, rework, and stochastic breakdowns"," European Journal of Operational Research, Elsevier, vol. 201(2), pages 641-643, March.
    3. Harry Groenevelt & Liliane Pintelon & Abraham Seidmann, 1992. "Production Lot Sizing with Machine Breakdowns," Management Science, INFORMS, vol. 38(1), pages 104-123, January.
    4. Chiu, Singa Wang & Wang, Shan-Ling & Chiu, Yuan-Shyi Peter, 2007. "Determining the optimal run time for EPQ model with scrap, rework, and stochastic breakdowns," European Journal of Operational Research, Elsevier, vol. 180(2), pages 664-676, July.
    5. Bijvank, Marco & Koole, Ger & Vis, Iris F.A., 2010. "Optimising a general repair kit problem with a service constraint," European Journal of Operational Research, Elsevier, vol. 204(1), pages 76-85, July.
    6. Nourelfath, Mustapha, 2011. "Service level robustness in stochastic production planning under random machine breakdowns," European Journal of Operational Research, Elsevier, vol. 212(1), pages 81-88, July.
    7. Alghalith, Moawia, 2013. "The interaction among production, hedging and investment decisions," Economic Modelling, Elsevier, vol. 30(C), pages 193-195.
    8. Chiu, Singa Wang & Chou, Chung-Li & Wu, Wen-Kuei, 2013. "Optimizing replenishment policy in an EPQ-based inventory model with nonconforming items and breakdown," Economic Modelling, Elsevier, vol. 35(C), pages 330-337.
    9. Mirzahosseinian, H. & Piplani, R., 2011. "A study of repairable parts inventory system operating under performance-based contract," European Journal of Operational Research, Elsevier, vol. 214(2), pages 256-261, October.
    10. Chiu, Singa Wang & Lin, Li-Wen & Chen, Kuang-Ku & Chou, Chung-Li, 2013. "Determining production–shipment policy for a vendor–buyer integrated system with rework and an amending multi-delivery schedule," Economic Modelling, Elsevier, vol. 33(C), pages 668-675.
    11. 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.
    12. Abraham Grosfeld-Nir & Yigal Gerchak, 2002. "Multistage Production to Order with Rework Capability," Management Science, INFORMS, vol. 48(5), pages 652-664, May.
    13. Sana, Shib Sankar, 2010. "An economic production lot size model in an imperfect production system," European Journal of Operational Research, Elsevier, vol. 201(1), pages 158-170, February.
    14. Symeonidis, Lazaros & Prokopczuk, Marcel & Brooks, Chris & Lazar, Emese, 2012. "Futures basis, inventory and commodity price volatility: An empirical analysis," Economic Modelling, Elsevier, vol. 29(6), pages 2651-2663.
    Full references (including those not matched with items on IDEAS)

    More about this item


    Manufacturing; Production run time; Machine breakdown; Defective item; Failure in rework; Production;

    JEL classification:

    • C02 - Mathematical and Quantitative Methods - - General - - - Mathematical Economics
    • C44 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Operations Research; Statistical Decision Theory
    • M11 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Production Management
    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:ecmode:v:37:y:2014:i:c:p:143-148. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dana Niculescu). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.