An economic production quantity model for deteriorating items with multiple production setups and rework

Gede Agus Widyadana and Hui Ming Wee

International Journal of Production Economics, 2012, vol. 138, issue 1, 62-67

Abstract: Rework is one of the main issues in reverse logistic and green supply chain, since it can reduce production cost and environmental problem. Many researchers focus on developing rework model, but few of them developed model for deteriorating items. In this paper, we develop an economic production quantity (EPQ) model for deteriorating items with rework. In one cycle, production facility can produce items in m production setups and one rework setup, (m, 1) policy. An example and sensitivity analysis is shown to illustrate the model. The results show that the deteriorating rate affects the optimal cost per unit time, but the effect is not significant. The parameters that significantly affect the optimal total cost per unit time are the serviceable holding cost, the production setup cost and the demand rate.

Keywords: EPQ; Deteriorating items; Rework; Multiple production setups (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (21)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:proeco:v:138:y:2012:i:1:p:62-67

DOI: 10.1016/j.ijpe.2012.02.025

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