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An economic production quantity model for deteriorating items with multiple production setups and rework

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  • Widyadana, Gede Agus
  • Wee, Hui Ming

Abstract

Rework is one of the main issues in reverse logistic and green supply chain, since it can reduce production cost and environmental problem. Many researchers focus on developing rework model, but few of them developed model for deteriorating items. In this paper, we develop an economic production quantity (EPQ) model for deteriorating items with rework. In one cycle, production facility can produce items in m production setups and one rework setup, (m, 1) policy. An example and sensitivity analysis is shown to illustrate the model. The results show that the deteriorating rate affects the optimal cost per unit time, but the effect is not significant. The parameters that significantly affect the optimal total cost per unit time are the serviceable holding cost, the production setup cost and the demand rate.

Suggested Citation

  • Widyadana, Gede Agus & Wee, Hui Ming, 2012. "An economic production quantity model for deteriorating items with multiple production setups and rework," International Journal of Production Economics, Elsevier, vol. 138(1), pages 62-67.
  • Handle: RePEc:eee:proeco:v:138:y:2012:i:1:p:62-67
    DOI: 10.1016/j.ijpe.2012.02.025
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    References listed on IDEAS

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    1. 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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    7. Flapper, Simme Douwe P. & Teunter, Ruud H., 2004. "Logistic planning of rework with deteriorating work-in-process," International Journal of Production Economics, Elsevier, vol. 88(1), pages 51-59, March.
    8. Ata Allah Taleizadeh & Seyed Jafar Sadjadi & Seyed Taghi Akhavan Niaki, 2011. "Multiproduct EPQ model with single machine, backordering and immediate rework process," European Journal of Industrial Engineering, Inderscience Enterprises Ltd, vol. 5(4), pages 388-411.
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    Citations

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    Cited by:

    1. Janssen, Larissa & Claus, Thorsten & Sauer, Jürgen, 2016. "Literature review of deteriorating inventory models by key topics from 2012 to 2015," International Journal of Production Economics, Elsevier, vol. 182(C), pages 86-112.
    2. repec:spr:joinma:v:29:y:2018:i:4:d:10.1007_s10845-015-1146-1 is not listed on IDEAS
    3. repec:eee:proeco:v:189:y:2017:i:c:p:1-13 is not listed on IDEAS
    4. Tai, Allen H. & Xie, Yue & Ching, Wai-Ki, 2016. "Inspection policy for inventory system with deteriorating products," International Journal of Production Economics, Elsevier, vol. 173(C), pages 22-29.
    5. Xiao, Tiaojun & Xu, Tiantian, 2013. "Coordinating price and service level decisions for a supply chain with deteriorating item under vendor managed inventory," International Journal of Production Economics, Elsevier, vol. 145(2), pages 743-752.
    6. Guchhait, Partha & Kumar Maiti, Manas & Maiti, Manoranjan, 2013. "Production-inventory models for a damageable item with variable demands and inventory costs in an imperfect production process," International Journal of Production Economics, Elsevier, vol. 144(1), pages 180-188.
    7. Pasandideh, Seyed Hamid Reza & Niaki, Seyed Taghi Akhavan & Nobil, Amir Hossein & Cárdenas-Barrón, Leopoldo Eduardo, 2015. "A multiproduct single machine economic production quantity model for an imperfect production system under warehouse construction cost," International Journal of Production Economics, Elsevier, vol. 169(C), pages 203-214.
    8. Yang, P.C. & Chung, S.L. & Wee, H.M. & Zahara, E. & Peng, C.Y., 2013. "Collaboration for a closed-loop deteriorating inventory supply chain with multi-retailer and price-sensitive demand," International Journal of Production Economics, Elsevier, vol. 143(2), pages 557-566.

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