A multiproduct single machine economic production quantity model for an imperfect production system under warehouse construction cost

Seyed Hamid Reza Pasandideh, Seyed Taghi Akhavan Niaki, Amir Hossein Nobil and Leopoldo Eduardo Cárdenas-Barrón ()

International Journal of Production Economics, 2015, vol. 169, issue C, 203-214

Abstract: This paper develops an economic production quantity (EPQ) inventory model for a multiproduct single-machine lot-sizing problem with nonconforming items including scrap and rework, where reworks are classified into several groups based on failure severity. In this inventory model, shortage is allowed and is backordered. The aim is to determine the optimal period length, the lot size, and the allowable shortage of each product so as the total cost, including setup, production, warehouse construction, holding, shortage, reworking, and disposal is minimized. Besides, the available total budget is scarce and that there is a lower bound on the service level of each product. While the convexity is proved, an exact method is proposed to solve the nonlinear programming problem. A numerical example is provided at the end to demonstrate the applicability of the proposed solution procedure as well as to perform a sensitivity analysis.

Keywords: Inventory control; EPQ; NLP model; Nonconforming items; Convex programming; Exact solution (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (16)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0925527315002893
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:proeco:v:169:y:2015:i:c:p:203-214

DOI: 10.1016/j.ijpe.2015.08.004

Access Statistics for this article

International Journal of Production Economics is currently edited by Stefan Minner

More articles in International Journal of Production Economics from Elsevier
Bibliographic data for series maintained by Catherine Liu ().