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Growing Science » International Journal of Industrial Engineering Computations » Mathematical modeling for exploring the effects of overtime option, rework, and discontinuous inventory issuing policy on EMQ model

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International Journal of Industrial Engineering Computations

ISSN 1923-2934 (Online) - ISSN 1923-2926 (Print)
Quarterly Publication
Volume 9 Issue 4 pp. 479-490 , 2018

Mathematical modeling for exploring the effects of overtime option, rework, and discontinuous inventory issuing policy on EMQ model Pages 479-490 Right click to download the paper Download PDF

Authors: Singa Wang Chiu, Hong-Dar Lin, Chung-Li Chou, Yuan-Shyi Peter Chiu

doi 10.5267/j.ijiec.2017.11.004
Crossmark

Keywords: Optimization, Replenishment lot-size and shipments, Overtime, Rework, Economic manufacturing quantity, Mathematical modeling, Discontinuous issuing policy

Abstract: This study employs mathematical modeling to explore the effects of overtime option, rework, and discontinuous end-item issuing policy on the economic manufacturing quantity (EMQ) model. Conventional EMQ model assumed that all products fabricated are of good quality and are issued under continuous policy. In real world, however, nonconforming items are randomly produced, due to diverse unexpected factors in fabrication process. When finished items are to be distributed to outside locations, discontinuous multi-shipment policy is often used rather than continuous rule. In addition, with the intention of increasing short-term capacity or shortening replenishment cycle length to smooth the production planning, adopting overtime option can be an effective strategy. To cope with the aforementioned features in real production systems, this study incorporates overtime option, rework, and multi-shipment policy into the EMQ model and explores their joint effects on optimal lot size and number of shipments, and on other relevant system parameters. Mathematical modeling and Hessian matrix equations enable us to derive the optimal policies to the problem. Through the use of numerical example, the applicability of research result is exhibited and a variety of significant effects of these features on the proposed system are revealed.

How to cite this paper

Chiu, S., Lin, H., Chou, C & Chiu, Y. (2018). Mathematical modeling for exploring the effects of overtime option, rework, and discontinuous inventory issuing policy on EMQ model.International Journal of Industrial Engineering Computations , 9(4), 479-490.

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Journal: International Journal of Industrial Engineering Computations | Year: 2018 | Volume: 9 | Issue: 4 | Views: 2478 | Reviews: 0

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