Production inventory model with reworking of imperfect items and integrates cost reduction delivery policy

M. Sanjai and S. Periyasamy

International Journal of Operational Research, 2018, vol. 32, issue 3, 329-349

Abstract: The classical EPQ model assumes that all items manufactured are of perfect quality. However, in real life production systems, due to various controllable and/or uncontrollable factors, the generation of defective items during a production run seems to be inevitable they should be reworked. A portion of non-conforming items produced is considered to be scrap, while the rest reworked in each cycle. This paper integrates cost reduction delivery policy into production inventory model with defective items with scrap and rework and finished items can only be delivered to customers at a fixed interval of time during production downtime with the purpose of reducing holding cost. A suitable mathematical model is developed and the optimal production lot size which minimises the total cost is derived. An illustrative example is provided and numerically verified. The validation of result in this model was coded in Microsoft Visual Basic 6.0.

Keywords: inventory; defective items; delivery policy; rework; scrap; demand and production. (search for similar items in EconPapers)
Date: 2018
References: Add references at CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://www.inderscience.com/link.php?id=92738 (text/html)
Access to full text is restricted to subscribers.

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:ids:ijores:v:32:y:2018:i:3:p:329-349

Access Statistics for this article

More articles in International Journal of Operational Research from Inderscience Enterprises Ltd
Bibliographic data for series maintained by Sarah Parker ().