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Economic Batch Quantity (EBQ) for a Single-Stage Production System with Rework and Scrapping
, M.Sc. Thesis Sharif University of Technology ; Haji, Rasoul (Supervisor)
Abstract
The classical economic batch quantity (EBQ) model assumes that all produced items have a perfect quality. But in real-life production systems, generation of defective items is inevitable. A portion of these defective items is considered to be scrap , while the other is assumed to be reworkable and reworking them can reduce costs and increase productivity. In this thesis we have studied the economic batch quantity for a single stage production system with rework and scrapping . We want to satisfy the customer demand and minimize total costs of the system like set up costs , production costs , rework costs , holding costs , shortage costs and scrapping costs . In the first chapter of this...