Determining a threshold control policy for an imperfect production system with rework jobs

Ching‐Chin Chern and Ping Yang

Naval Research Logistics (NRL), 1999, vol. 46, issue 3, 273-301

Abstract: Consider a threshold control policy for an imperfect production system with only a work center handling both regular and rework jobs. An imperfect production system studied here, generates defect jobs by factors other than machine failures. A threshold control or (ω, s) policy sets the guideline for a work center to switch between regular and rework jobs. A production cycle begins with loading and processing of several batches of regular jobs with a lot size equal to s. The outcome of each completed regular job is an independent Bernoulli trial with three possibilities: good, rework, or scrap. Once the work center accumulates more than a threshold ω of rework jobs, it finishes the last batch of regular jobs and switches to rework jobs. The objective of this research is to find a threshold ω and a lot size s that maximize the average long‐term profit. The ultimate goal is to construct a simple algorithm to search for ω and s that can be implemented directly in production management systems, as a result of this work. © 1999 John Wiley & Sons, Inc. Naval Research Logistics 46: 273–301, 1999

Date: 1999
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https://doi.org/10.1002/(SICI)1520-6750(199904)46:33.0.CO;2-3

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