Abstract
This paper addresses lot sizing decisions when defective items can be reworked. In this work, models have been developed considering rework process for a single-stage and a multi-stage production system. In the first model, an optimal multi-order policy of raw materials to meet the demands of a production facility considering rework process, which supplies fixed quantity of finished products at fixed intervals of time, is developed to minimise the Total Cost (TC). In the second model, an optimal multi-order policy of raw materials to meet the demands of a multi-stage production facility linked with kanban mechanism considering rework process which supplies fixed quantity of finished products at fixed intervals of time is developed to minimise the TC. It is concluded that the TC with rework policy tends to be higher than that without considering rework.
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