Abstract
This study develops two extended economic manufacturing quantity (EMQ)-based models with a discontinuous product issuing policy, random machine breakdown, and rework failures. Various real conditions in production processes, end-product delivery, and intra-supply chains such as a producer–retailer integrated scheme are examined. The first model incorporates a discontinuous multi-delivery policy into a prior work (Chiu et al. in Proc Inst Mech Eng B J Eng 223:183–194, 2009) in lieu of their continuous policy. Such an enhanced model can address situations in supply chain environments, where finished products are transported to outside retail stores (or customers). The second model further combines retailer’s stock holding costs into the first model. This extended EMQ model is applicable in situations in present-day manufacturing firms where finished products are distributed to company’s own retail stores (or regional sales offices) and stocked there for sale. Two aforementioned extended EMQ models are investigated, respectively. Mathematical modeling along with iterative algorithms are employed to derive the optimal production run times that minimize the expected total system costs, including the costs incurred in production units, transportation, and retail stores, for these integrated EMQ systems. Numerical examples are provided to demonstrate the practical application of the research results.
Highlights
This study explores the optimal production run time for a producer–retailer integrated economic manufacturing quantity (EMQ) model with rework failures, random machine breakdown, and a discontinuous inventory issuing policy
The classic EMQ model implicitly assumes that production equipment is in perfect condition and all items produced are
The first policy considers that the production of an interrupted lot will not be resumed after a breakdown, while the second assumes that the production of an interrupted lot resumed immediately after production is restored and if the current on-hand inventory is below a certain threshold level
Summary
This study explores the optimal production run time for a producer–retailer integrated economic manufacturing quantity (EMQ) model with rework failures, random machine breakdown, and a discontinuous inventory issuing policy. Chiu et al (2009) studied the optimal production run time in an EMQ model with imperfect rework and Poisson machine breakdowns under the abort/resume (A/R) control policy In their proposed system, a random defective rate is assumed and all defective items are reworked at the end of regular production, and there exists a certain percentage of rework failures. Model 1: Description, modeling, and solution process The first proposed model in this study explores the optimal production run time for an economic manufacturing quantity model with a discontinuous inventory issuing policy, random machine breakdown, and rework failures. To prove t1∗ falls within bounds, we first multiply the second term of Eq (21) by 2P1t12β and obtain
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