Delayed payment policy in multi-product single-machine economic production quantity model with repair failure and partial backordering

Abstract

This study develops a single-machine manufacturing system for multi-product with defective items and delayed payment policy. Contradictory to the literature limited production capacity and partial backlogging are considered for more realistic result. The objective of this research is to obtain the optimal cycle length, optimal production quantity, and optimal backorder quantity of each product such that the expected total cost is minimum. The model is solved analytically. Three efficient lemmas are developed to obtain the global optimum solution of the model. An improved algorithm is designed to obtain the numerical solution of the model. An illustrative numerical example and sensitivity analysis are provided to show the practical usage of proposed method.