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Optimizing the Economic Lot Size of a Two-Stage Supply Chain With Rework Consideration

Mobarak Abadi, Sara | 2013

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  1. Type of Document: M.Sc. Thesis
  2. Language: Farsi
  3. Document No: 44259 (01)
  4. University: Sharif University of Technology
  5. Department: Industrial Engineering
  6. Advisor(s): Hajji, Rasul
  7. Abstract:
  8. In the present research a two stage supply chain is considered. In its first echelon, there is a producer that produces both perfect and defective items. Defective items are reworked by producer and no defective item is produced during the reworking process. There is a buyer in second echelon of the supply chain that faces constant demand and orders fixed batches in fixed periods to the producer. So in each complete cycle of production, multiple orders are received from buyer. Two different policies for reworking are investigated in this research. In the first policy, reworking is done in the same cycle that producing is conducted but in the second one all defective items that are produced in N cycles are accumulated and reworked in a separate single cycle. This investigation defines and optimizes all costs of the supply chain in each these two policies. This optimization is conducted by determining optimal values for: producing and ordering batch size, backorder, the number of ordering in each production cycle and also the value of N (number of production cycles before reworking in second policy). Ultimately in numerical analysis of this research, the costs of the supply chain in the policies are compared and the sensitivity of optimal values of total cost, backorder and production lot size to each of the parameters are investigated in diagrams
  9. Keywords:
  10. Defective Items ; Rework ; Two-Stage Supply Chain ; Complete Square Method

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