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A multiproduct single machine economic production quantity model for an imperfect production system under warehouse construction cost

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  • Pasandideh, Seyed Hamid Reza
  • Niaki, Seyed Taghi Akhavan
  • Nobil, Amir Hossein
  • Cárdenas-Barrón, Leopoldo Eduardo

Abstract

This paper develops an economic production quantity (EPQ) inventory model for a multiproduct single-machine lot-sizing problem with nonconforming items including scrap and rework, where reworks are classified into several groups based on failure severity. In this inventory model, shortage is allowed and is backordered. The aim is to determine the optimal period length, the lot size, and the allowable shortage of each product so as the total cost, including setup, production, warehouse construction, holding, shortage, reworking, and disposal is minimized. Besides, the available total budget is scarce and that there is a lower bound on the service level of each product. While the convexity is proved, an exact method is proposed to solve the nonlinear programming problem. A numerical example is provided at the end to demonstrate the applicability of the proposed solution procedure as well as to perform a sensitivity analysis.

Suggested Citation

  • 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.
    • Handle: RePEc:eee:proeco:v:169:y:2015:i:c:p:203-214
    DOI: 10.1016/j.ijpe.2015.08.004
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    2. Amir Hossein Nobil & Erfan Nobil & Leopoldo Eduardo Cárdenas-Barrón & Dagoberto Garza-Núñez & Gerardo Treviño-Garza & Armando Céspedes-Mota & Imelda de Jesús Loera-Hernández & Neale R. Smith, 2023. "Economic Order Quantity for Growing Items with Mortality Function under Sustainable Green Breeding Policy," Mathematics, MDPI, vol. 11(4), pages 1-21, February.
    3. Monalisha Tripathy & Geetanjali Sharma & Anuj Kumar Sharma, 2022. "An EOQ inventory model for non-instantaneous deteriorating item with constant demand under progressive financial trade credit facility," OPSEARCH, Springer;Operational Research Society of India, vol. 59(4), pages 1215-1243, December.
    4. Al-Salamah, Muhammad, 2019. "Economic production quantity in an imperfect manufacturing process with synchronous and asynchronous flexible rework rates," Operations Research Perspectives, Elsevier, vol. 6(C).
    5. Beatrice Marchi & Lucio Enrico Zavanella & Simone Zanoni, 2020. "Joint economic lot size models with warehouse financing and financial contracts for hedging stocks under different coordination policies," Journal of Business Economics, Springer, vol. 90(8), pages 1147-1169, September.
    6. Shaktipada Bhuniya & Biswajit Sarkar & Sarla Pareek, 2019. "Multi-Product Production System with the Reduced Failure Rate and the Optimum Energy Consumption under Variable Demand," Mathematics, MDPI, vol. 7(5), pages 1-20, May.
    7. Su, Rung-Hung & Weng, Ming-Wei & Yang, Chih-Te, 2021. "Effects of corporate social responsibility activities in a two-stage assembly production system with multiple components and imperfect processes," European Journal of Operational Research, Elsevier, vol. 293(2), pages 469-480.
    8. Gudivada Durga Bhavani & Ieva Meidute-Kavaliauskiene & Ghanshaym S. Mahapatra & Renata Činčikaitė, 2022. "Pythagorean Fuzzy Storage Capacity with Controllable Carbon Emission Incorporating Green Technology Investment on a Two-Depository System," Energies, MDPI, vol. 15(23), pages 1-34, November.
    9. Mitali Sarkar & Biswajit Sarkar & Muhammad Waqas Iqbal, 2018. "Effect of Energy and Failure Rate in a Multi-Item Smart Production System," Energies, MDPI, vol. 11(11), pages 1-21, October.
    10. Amir Hossein Nobil & Amir Hosein Afshar Sedigh & Leopoldo Eduardo Cárdenas-Barrón, 2020. "A multiproduct single machine economic production quantity (EPQ) inventory model with discrete delivery order, joint production policy and budget constraints," Annals of Operations Research, Springer, vol. 286(1), pages 265-301, March.
    11. Ashoke Kumar Bera & Dipak Kumar Jana, 2017. "Multi-item imperfect production inventory model in Bi-fuzzy environments," OPSEARCH, Springer;Operational Research Society of India, vol. 54(2), pages 260-282, June.
    12. Vandana & A. K. Das, 2022. "Two-warehouse supply chain model under preservation technology and stochastic demand with shortages," OPSEARCH, Springer;Operational Research Society of India, vol. 59(4), pages 1587-1612, December.
    13. Yann Mey Yee & Lilian Sy & Kryzia Lomibao & Josephine Dela Cruz German & Hui-Ming Wee, 2023. "Sustainable Economic Production Quantity Model Considering Greenhouse Gas and Wastewater Emissions," Sustainability, MDPI, vol. 15(4), pages 1-30, February.
    14. Priyanka & Sarla Pareek, 2023. "A sustainable inventory model for stochastic demand using innovative multi-item production system with reduced failure rate," International Journal of System Assurance Engineering and Management, Springer;The Society for Reliability, Engineering Quality and Operations Management (SREQOM),India, and Division of Operation and Maintenance, Lulea University of Technology, Sweden, vol. 14(3), pages 844-864, June.
    15. Guiliang Gong & Raymond Chiong & Qianwang Deng & Qiang Luo, 2020. "A memetic algorithm for multi-objective distributed production scheduling: minimizing the makespan and total energy consumption," Journal of Intelligent Manufacturing, Springer, vol. 31(6), pages 1443-1466, August.

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