Economic optimisation for an imperfect production system with rework and scrap rate

Jen-Ming Chen, Ya-Hui Lin and Yan-Chun Chen

International Journal of Industrial and Systems Engineering, 2010, vol. 6, issue 1, 92-109

Abstract: This paper developed an integrated model in considering the situations of an imperfect process with imperfect maintenance and shortage, and an imperfect rework process for the determination of economic production quantity. This imperfect process has a general deterioration distribution with increasing hazard rate. Even with periodic preventive maintenance, such a production system cannot be recovered as good as new. As the process produces non-conforming items, a percentage of them are scrapped and the others are reworked. There is a percentage of the reworking items fail the repairing and become scrap items in the imperfect rework process. We use numerical analyses to simulate the effect of changes in the various parameters on the optimal solution. And look at the optimal inspection interval, inspection frequency and production quantity that maximum total profit which the advantages of rework process were explored.

Keywords: economic production quantity; EPQ; imperfect production systems; preventive maintenance; integrated models; shortages; rework processes; deterioration distribution; hazard rates; non-conforming items; scrap rate; reworking; numerical analysis; parameter changes; optimal solutions; inspection intervals; inspection frequency; profit maximisation; industrial engineering; systems engineering. (search for similar items in EconPapers)
Date: 2010
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