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Simultaneous determination of production lot size and process parameters under process deterioration and process breakdown

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  • Jeang, Angus

Abstract

The purpose of this study is to combine production-inventory management with process-quality design for determining production lot size and process parameters under the possibility of process deterioration and breakdown. The total cost of such an integrated model includes: the combined setup cost (production setup and process resetting), the costs of quality loss, tolerance and mean costs for processes established, a penalty cost for process breakdown and carrying costs for cumulated inventory. The quadratic quality loss function is introduced to assess quality loss within the system. Decision variables include the initial setting (process mean) and process tolerance for process parameters determination, and production lot size for production-inventory management. The cycle time for production-inventory management is assumed to be the same as the resetting cycle for the new process-quality system. The contribution of this study lies in its development of an integrated model that enables process parameters, production lot size, and cycle time to be determined concurrently for quality and economic considerations, and at an earlier time in the process design and production management stage. An example is presented to demonstrate the proposed model.

Suggested Citation

  • Jeang, Angus, 2012. "Simultaneous determination of production lot size and process parameters under process deterioration and process breakdown," Omega, Elsevier, vol. 40(6), pages 774-781.
  • Handle: RePEc:eee:jomega:v:40:y:2012:i:6:p:774-781
    DOI: 10.1016/j.omega.2011.12.005
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    References listed on IDEAS

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    2. Om Prakash & A.R. Roy & A. Goswami, 2014. "Stochastic manufacturing system with process deterioration and machine breakdown," International Journal of Systems Science, Taylor & Francis Journals, vol. 45(12), pages 2539-2551, December.
    3. Assid, M. & Gharbi, A. & Dhouib, K., 2015. "Joint production and subcontracting planning of unreliable multi-facility multi-product production systems," Omega, Elsevier, vol. 50(C), pages 54-69.
    4. Koca, Esra & Yaman, Hande & Selim Aktürk, M., 2015. "Stochastic lot sizing problem with controllable processing times," Omega, Elsevier, vol. 53(C), pages 1-10.
    5. Bouslah, B. & Gharbi, A. & Pellerin, R., 2016. "Integrated production, sampling quality control and maintenance of deteriorating production systems with AOQL constraint," Omega, Elsevier, vol. 61(C), pages 110-126.
    6. Sandeep Kumar & Bhupesh Kumar Lad, 2017. "Integrated production and maintenance planning for parallel machine system considering cost of rejection," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 68(7), pages 834-846, July.

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