Multi-item economic production quantity model for imperfect items with multiple production setups and rework under the effect of preservation technology and learning environment

Jawla, P.; Singh, S.

Growing Science » International Journal of Industrial Engineering Computations » Multi-item economic production quantity model for imperfect items with multiple production setups and rework under the effect of preservation technology and learning environment

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International Journal of Industrial Engineering Computations

ISSN 1923-2934 (Online) - ISSN 1923-2926 (Print) Quarterly Publication Volume 7 Issue 4 pp. 703-716 , 2016

Multi-item economic production quantity model for imperfect items with multiple production setups and rework under the effect of preservation technology and learning environment Pages 703-716 Download PDF

Authors: Preeti Jawla, S. R. Singh

DOI: 10.5267/j.ijiec.2016.2.003

Keywords: Multi-item, Selling price dependent demand, Preservation, Variable holding cost, Volume flexibility, Learning, Rework, Inflation, Multiple production setups

Abstract: This study aims to investigate the multi-item inventory model in a production/rework system with multiple production setups. Rework can be depicted as the transformation of production rejects, failed, or non-conforming items into re-usable products of the same or lower quality during or after inspection. Rework is very valuable and profitable, especially if materials are limited in availability and also pricey. Moreover, rework can be a good contribution to a ‘green image environment’. In this paper, we establish a multi-item inventory model to determine the optimal inventory replenishment policy for the economic production quantity (EPQ) model for imperfect, deteriorating items with multiple productions and rework under inflation and learning environment. In inventory modelling, Inflation plays a very important role. In one cycle, production system produces items in n production setups and one rework setup, i.e. system follows (n, 1) policy. To reduce the deterioration of products preservation technology investment is also considered in this model. Holding cost is taken as time dependent. We develop expressions for the average profit per time unit, including procurement of input materials, costs for production, rework, deterioration cost and storage of serviceable and reworkable lots. Using those expressions, the proposed model is demonstrated numerically and the sensitivity analysis is also performed to study the behaviour of the model.

How to cite this paper

 Jawla, P & Singh, S. (2016). Multi-item economic production quantity model for imperfect items with multiple production setups and rework under the effect of preservation technology and learning environment.International Journal of Industrial Engineering Computations , 7(4), 703-716.

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