IDEAS home Printed from https://ideas.repec.org/a/eee/proeco/v169y2015icp203-214.html
   My bibliography  Save this article

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

Author

Listed:
  • 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
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0925527315002893
    Download Restriction: Full text for ScienceDirect subscribers only

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    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.
    2. Taleizadeh, Ata Allah & Cárdenas-Barrón, Leopoldo Eduardo & Mohammadi, Babak, 2014. "A deterministic multi product single machine EPQ model with backordering, scraped products, rework and interruption in manufacturing process," International Journal of Production Economics, Elsevier, vol. 150(C), pages 9-27.
    3. Li, Jian & Wang, Shouyang & Cheng, T.C. Edwin, 2008. "Analysis of postponement strategy by EPQ-based models with planned backorders," Omega, Elsevier, vol. 36(5), pages 777-788, October.
    4. Weiss, Howard J., 1982. "Economic order quantity models with nonlinear holding costs," European Journal of Operational Research, Elsevier, vol. 9(1), pages 56-60, January.
    5. Goyal, S. K. & Giri, B. C., 2001. "Recent trends in modeling of deteriorating inventory," European Journal of Operational Research, Elsevier, vol. 134(1), pages 1-16, October.
    6. Eroglu, Abdullah & Ozdemir, Gultekin, 2007. "An economic order quantity model with defective items and shortages," International Journal of Production Economics, Elsevier, vol. 106(2), pages 544-549, April.
    7. Skouri, K. & Konstantaras, I. & Lagodimos, A.G. & Papachristos, S., 2014. "An EOQ model with backorders and rejection of defective supply batches," International Journal of Production Economics, Elsevier, vol. 155(C), pages 148-154.
    8. Jack Rogers, 1958. "A Computational Approach to the Economic Lot Scheduling Problem," Management Science, INFORMS, vol. 4(3), pages 264-291, April.
    9. Dey, O. & Giri, B.C., 2014. "Optimal vendor investment for reducing defect rate in a vendor–buyer integrated system with imperfect production process," International Journal of Production Economics, Elsevier, vol. 155(C), pages 222-228.
    10. Bakker, Monique & Riezebos, Jan & Teunter, Ruud H., 2012. "Review of inventory systems with deterioration since 2001," European Journal of Operational Research, Elsevier, vol. 221(2), pages 275-284.
    11. 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.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. repec:spr:opsear:v:54:y:2017:i:2:d:10.1007_s12597-016-0283-4 is not listed on IDEAS

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:proeco:v:169:y:2015:i:c:p:203-214. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dana Niculescu). General contact details of provider: http://www.elsevier.com/locate/ijpe .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.