Abstract
Most of the classical inventory control model assumes that all items received conform to quality characteristics. However, in practice, items may be damaged due to production conditions, transportation and environmental conditions. Modelling such real world problems involve various indeterminate phenomena which can be estimated through human beliefs. The uncertainty theory proposed by Liu (2015) is extensively regarded as an appropriate tool to deal with such uncertainty. This paper investigates the optimum production run time and optimum cost in an imperfect production process, where the rate of imperfect items are different in different states of the process. The process may be shifting from ‘in-control’ state to the ‘out-of-control’ state is an uncertain variable with certain uncertainty distribution. Some propositions are derived for the optimal production run time and optimized the expected total cost function per unit time. Finally, numerical examples have been illustrated to study the practical feasibility of the model.
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