Production-Inventory System for Deteriorating Items with Machine Breakdown, Inspection, and Partial Backordering

K.Y. Kung, Y.D. Huang, H.M. Wee and Y. Daryanto
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K.Y. Kung: Department of Mechanical Engineering, Institute of Mechanical and Electrical Engineering, Lingnan Normal University, Zhanjiang 524048, China
Y.D. Huang: Department of Marketing and Distribution Management, National Pingtung University, Pingtung 90041, Taiwan
H.M. Wee: Department of Industrial and Systems Engineering, Chung Yuan Christian University, Chungli 32023, Taiwan
Y. Daryanto: Department of Industrial Engineering, Universitas Atma Jaya Yogyakarta, Yogyakarta 55281, Indonesia

Mathematics, 2019, vol. 7, issue 7, 1-26

Abstract: This study considers the effects of a machine breakdown, inspection, and partial backordering for deteriorating items. Most industries try to reduce facility unavailability by implementing a regular inspection and preventive maintenance since there is a possibility that some machines will breakdown during the production process. Moreover, an emergency purchase policy can be provided for quick response to customer’s backorder. The system also produces imperfect items with different rates before and after the inspection. Rework process and post-sales warranty are launched for the defective items. Unlike previous studies, we applied a fixed-point approach and renewal reward theorem to solve the deteriorating production-inventory model while considering machine breakdown, inspection, and partial backordering. A case example and sensitivity analysis are provided. The sensitivity analysis shows the important parameters that should be considered in designing the inspection plan and the replenishment policy when facility unavailability and imperfect items exist.

Keywords: production-inventory system; machine breakdown; inspection; renewal reward theorem; partial backordering; deteriorating items (search for similar items in EconPapers)
JEL-codes: C (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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