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

  • Jeang, Angus
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    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.

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    Article provided by Elsevier in its journal Omega.

    Volume (Year): 40 (2012)
    Issue (Month): 6 ()
    Pages: 774-781

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    Handle: RePEc:eee:jomega:v:40:y:2012:i:6:p:774-781
    DOI: 10.1016/
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    1. Chakraborty, Tulika & Giri, B.C. & Chaudhuri, K.S., 2009. "Production lot sizing with process deterioration and machine breakdown under inspection schedule," Omega, Elsevier, vol. 37(2), pages 257-271, April.
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    4. Hsieh, Tsu-Pang & Dye, Chung-Yuan, 2012. "A note on "The EPQ with partial backordering and phase-dependent backordering rate"," Omega, Elsevier, vol. 40(1), pages 131-133, January.
    5. Dohi, Tadashi & Okamura, Hiroyuki & Osaki, Shunji, 2001. "Optimal control of preventive maintenance schedule and safety stocks in an unreliable manufacturing environment," International Journal of Production Economics, Elsevier, vol. 74(1-3), pages 147-155, December.
    6. Wee, Hui-Ming & Wang, Wan-Tsu, 2012. "A supplement to the EPQ with partial backordering and phase-dependent backordering rate," Omega, Elsevier, vol. 40(3), pages 264-266.
    7. Kuhn, Heinrich, 1997. "A dynamic lot sizing model with exponential machine breakdowns," European Journal of Operational Research, Elsevier, vol. 100(3), pages 514-536, August.
    8. Chen, Chung-Ho & Lai, Min-Tsai, 2007. "Economic manufacturing quantity, optimum process mean, and economic specification limits setting under the rectifying inspection plan," European Journal of Operational Research, Elsevier, vol. 183(1), pages 336-344, November.
    9. Chang, Hung-Chi & Ho, Chia-Huei, 2010. "Exact closed-form solutions for "optimal inventory model for items with imperfect quality and shortage backordering"," Omega, Elsevier, vol. 38(3-4), pages 233-237, June.
    10. Pentico, David W. & Drake, Matthew J. & Toews, Carl, 2011. "The EPQ with partial backordering and phase-dependent backordering rate," Omega, Elsevier, vol. 39(5), pages 574-577, October.
    11. Jeang, Angus, 1998. "Reliable tool replacement policy for quality and cost," European Journal of Operational Research, Elsevier, vol. 108(2), pages 334-344, July.
    12. Yang, Suh-Jenq & Yang, Dar-Li, 2010. "Minimizing the makespan on single-machine scheduling with aging effect and variable maintenance activities," Omega, Elsevier, vol. 38(6), pages 528-533, December.
    13. Hyun Kim, Chang & Hong, Yushin, 1999. "An optimal production run length in deteriorating production processes," International Journal of Production Economics, Elsevier, vol. 58(2), pages 183-189, January.
    14. Berthaut, F. & Gharbi, A. & Dhouib, K., 2011. "Joint modified block replacement and production/inventory control policy for a failure-prone manufacturing cell," Omega, Elsevier, vol. 39(6), pages 642-654, December.
    15. Kim, Chang Hyun & Hong, Yushin, 1997. "An extended EMQ model for a failure prone machine with general lifetime distribution," International Journal of Production Economics, Elsevier, vol. 49(3), pages 215-223, May.
    16. Ganeshan, Ram & Kulkarni, Shailesh & Boone, Tonya, 2001. "Production economics and process quality: A Taguchi perspective," International Journal of Production Economics, Elsevier, vol. 71(1-3), pages 343-350, May.
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