Abstract
This paper proposes a cost reduction distribution policy for an integrated manufacturing system operating under quality assurance practice. We reexamine the problem studied by Chiu et al. [Numerical method for determination of the optimal lot size for a manufacturing system with discontinuous issuing policy and rework. International Journal for Numerical Methods in Biomedical Engineering, doi:10.1002/cnm.1369] and improve its replenishment lot-size solution in terms of lowering producer’s stock holding cost. Mathematical modeling and analysis is employed in this study and optimal replenishment lot size is derived. A numerical example is provided to show the practical usage of research result as well as to demonstrate significant savings in producer’s holding cost as compared to that in Chiu et al.
Highlights
This paper proposes a cost reduction distribution policy for an integrated manufacturing system operating under quality assurance practice
This paper proposes a cost reduction distribution policy to improve the economic lot size solution of a manufacturing system with discontinuous issuing policy and imperfect rework [1]
Chiu et al [1] investigated the joint effect of a discontinuous inventory issuing policy and an imperfect rework process on the optimal replenishment lot size of an integrated economic production quantity (EPQ) model
Summary
This paper proposes a cost reduction distribution policy to improve the economic lot size solution of a manufacturing system with discontinuous issuing policy and imperfect rework [1]. A general cost model was developed first considering both raw materials and finished products This model was used to develop a simple procedure to determine an optimal ordering policy for procurement of raw materials as well as the manufacturing batch size to minimize the total cost for meeting the customer demand on time. Chiu et al [1] investigated the joint effect of a discontinuous inventory issuing policy and an imperfect rework process on the optimal replenishment lot size of an integrated EPQ model. They assumed that the random defective items produced are partially repairable and the rework process is not perfect either, scrap items may be generated during the rework. The joint effects of the n + 1 multi-delivery policy and imperfect rework on the optimal replenishment lot size for this integrated EPQ model are studied
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