Abstract: Many researchers focused on economic production quantity (EPQ) model for deteriorating items with rework of defective items in a single production run. Few of them proposed the model for multi-production inventory model under the assumptions (i) all the defective items can be reproduced as serviceable items and (ii) all the deteriorating items can be detached from the inventory through screening process. However, in real life manufacturing systems, due to controllable or uncontrollable factors, the defective items may not be reproduced as serviceable items and hence the generation of scrap (disposable) items is potential. It is possible that the internally deteriorating items like fruits, vegetables, eggs, pharmaceutical drugs, etc. pass on to customers which will make negative impact on corporate image in the global market. This paper presents a multi-production run inventory model for deteriorating items with scrap, defective items, failure rework and penalty cost for selling the deteriorating items to customers under finite planning horizon. Our objective is to determine the optimal production run, optimal finite planning horizon by minimizing the total cost of the system. A solution procedure with an algorithm is proposed and a numerical example is provided to demonstrate the applicability of the model. Finally, sensitivity analysis is provided to provide managerial phenomena of the system.
How to cite this paper
Sekar, T & Uthayakumar, R. (2017). A multi-production inventory model for deteriorating items considering penalty and environmental pollution cost with failure rework.Uncertain Supply Chain Management, 5(3), 229-242.
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