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Determining optimum reject allowances for deteriorating production systems

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  • Mohan Vachani

Abstract

Since most manufacturing processes inevitably produce some defective items, it is common practice to produce a quantity larger than the actual order size. This excess is called a reject allowance. In this paper we consider production processes which undergo stochastic deterioration and demonstrate that under appropriate conditions a smallest optimum reject allowance exists and can be easily computed. We also investigate the optimality of periodic process inspections and show that in some cases one can do better by following an (r, R) inspection‐processing policy.

Suggested Citation

  • Mohan Vachani, 1969. "Determining optimum reject allowances for deteriorating production systems," Naval Research Logistics Quarterly, John Wiley & Sons, vol. 16(3), pages 275-286, September.
    • Handle: RePEc:wly:navlog:v:16:y:1969:i:3:p:275-286
    DOI: 10.1002/nav.3800160301
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    Cited by:

    1. Stephen M. Gilbert & Hena M Bar, 1999. "The value of observing the condition of a deteriorating machine," Naval Research Logistics (NRL), John Wiley & Sons, vol. 46(7), pages 790-808, October.

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