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

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

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    Article provided by Elsevier in its journal Economic Modelling.

    Volume (Year): 37 (2014)
    Issue (Month): C ()
    Pages: 143-148

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    Handle: RePEc:eee:ecmode:v:37:y:2014:i:c:p:143-148
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    1. Alghalith, Moawia, 2013. "The interaction among production, hedging and investment decisions," Economic Modelling, Elsevier, vol. 30(C), pages 193-195.
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    4. 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.
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    8. 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.
    9. 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.
    10. 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.
    11. 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.
    12. 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.
    13. Abraham Grosfeld-Nir & Yigal Gerchak, 2002. "Multistage Production to Order with Rework Capability," Management Science, INFORMS, vol. 48(5), pages 652-664, May.
    14. 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.
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