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

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

Abstract

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
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    References listed on IDEAS

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    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.
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    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.
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    More about this item

    Keywords

    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

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