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Random rework rate: Obtaining economic batch quantity

Haji, R ; Sharif University of Technology | 2008

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  1. Type of Document: Article
  2. Publisher: 2008
  3. Abstract:
  4. In this paper we intend to obtain the economic batch quantity (EBQ) for an imperfect production system in which defective items are produced in each cycle of production. In the litrature of inventory control when the rework is done on defective items it is assumed that the production rate of the rework process is constant and the setup time for rework is ignored. Here we assume that due to the nature of the rework process its production rate is different from the normal production rate and is stochastic. We also assume that after each production run the rework process starts immediately after a non-zero setup time for the rework. Further we assume that the inspection costs during the normal production and rework proccessing times are different. For this system, we derive the expected total cost function, consisting of inventory holding, setup, normal production process, rework process, and inspection costs per unit time. Then we obtain the (EBQ) which minimizes this expected total cost. The results show that to obtain the (EBQ) value we do not need the distribution function of the random rate of rewok, only a knowledge about the mean of the reciprocal of this random variable is sufficient. Copyright©(2008) by Computers & Industrial Engineering
  5. Keywords:
  6. EBQ ; Economic batch quantity ; Imperfect production systems ; Inventory holding ; Production process ; Production rates ; Rework ; Total cost function ; Inventory control ; Production control ; Production engineering ; Stochastic systems ; Costs
  7. Source: 38th International Conference on Computers and Industrial Engineering 2008 ; Volume 3 , 2008 , Pages 3030-3033 ; 9781627486828 (ISBN)