A flexible planning approach for integrated lot sizing and rework planning with random proportion of defective products

Pierre Kohlmann and Florian Sahling

International Journal of Production Research, 2024, vol. 62, issue 19, 6961-6978

Abstract: We consider a stochastic capacitated lot sizing problem with in-line rework. Both defective and defect-free products can be the result of an imperfect production process in real-world production systems. However, the proportion of defective items in a production lot is subject to uncertainty. For economic and environmental reasons, the possibility to rework defective products appears reasonable since these products usually have considerable value. In this paper, a nonlinear model formulation for integrated lot sizing and rework planning is proposed. We use a sample average approach to approximate the generic nonlinear model formulation. To cope with the randomness of the proportion of defective products, we apply a flexible planning approach that allows the adjustment of production and rework quantities. We conduct extensive numerical investigations to evaluate the performance of the proposed planning approach.

Date: 2024
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DOI: 10.1080/00207543.2024.2314717

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