Abstract
This study considers the effects of a machine breakdown, inspection, and partial backordering for deteriorating items. Most industries try to reduce facility unavailability by implementing a regular inspection and preventive maintenance since there is a possibility that some machines will breakdown during the production process. Moreover, an emergency purchase policy can be provided for quick response to customer’s backorder. The system also produces imperfect items with different rates before and after the inspection. Rework process and post-sales warranty are launched for the defective items. Unlike previous studies, we applied a fixed-point approach and renewal reward theorem to solve the deteriorating production-inventory model while considering machine breakdown, inspection, and partial backordering. A case example and sensitivity analysis are provided. The sensitivity analysis shows the important parameters that should be considered in designing the inspection plan and the replenishment policy when facility unavailability and imperfect items exist.
Highlights
Inventory management is the process whereby the appropriate inventory is kept to guarantee the availability of stocks to the customers [1]
This paper develops an economic production quantity (EPQ) model that facility unavailability and the imperfect items
The study assumed that a predetermined inspection considers facility unavailability and the imperfect items
Summary
Inventory management is the process whereby the appropriate inventory is kept to guarantee the availability of stocks to the customers [1]. The effect of a machine breakdown, imperfect item, quality planning, and deterioration are correlated; these factors cannot be neglected in replenishment planning (see Figure 1). A regular inspection will reduce the probability of machine breakdown, which will affect the possibility of shortages and the need for an emergency purchase. Machine inspection is correlated to its performance, which will affect the defective product rates. This study extends previous studies and contributes a new economic production quantity (EPQ) model while considering the effects of scheduled inspection, random machine breakdown, unpredictable repair time, and imperfect items for deterioration items. The objective of the proposed model is to minimize the total cost by determining the optimal production up-time period and the elapsed time of implementing inspection time.
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