Abstract:
In this paper, an economic production quantity (EPQ) inventory model with scrap and rework is developed. The inventory model is for multiple products and all products are manufactured in a single machine. Clearly, the existence of one machine results in limited production capacity and thus in shortages. Therefore, shortages are permitted and partially backordered. We show that the model of the problem is a constrained non-linear program and use the GAMS modelling language to solve it. Our objective is to minimize the joint total cost of the system and the supply cost of the warehouse space, subject to capacity, service level, and budget and warehouse space constraints. Subsequently, a nonlinear programming solver BARON is used to solve the model. At the end, a numerical example is provided to demonstrate the applicability of the model to real-world manufacturing problems. To verify the solution obtained and to evaluate the performance of MCDM (Multi-Criteria Decision Making) methods, a TUKEY test is employed to compare the means of the primary objective values, the mean values of the second objective, and the mean of the CPU time needed for solving the problem using various methods of MCDM. Also, to compare the methods, we used the TOPSIS (Technique for Order Preference by Similarity to Ideal Solution). The results show that the Torabi-Hasini method is the most efficient method to solve the model and the solving capacities of the methods differ significantly. Finally, some conclusions and future research are discussed.
Machine summary:
com Solving a Deterministic Multi-product Single-machine EPQ Model with Partial Backordering, Scrapped Products and Rework Mehrnaz Najafi a, Ali Ghodratnama a,* and Seyed Hamid Reza Pasandideh a a Department of Industrial Engineering, Faculty of Engineering, Kharazmi University, Tehran, Iran Abstract In this paper, an economic production quantity (EPQ) inventory model with scrap and rework is developed.
In this regard, academicians and researchers have investigated the effects of imperfect quality production, rework, and breakdown on EPQ inventory models.
Several other researches on EPQ inventory models that considered different variants of imperfect production processes are Sarker et al.
(2016) considered an EPQ model for returned/reworked inventories during the imperfect production process under price-sensitive stock-dependent demand.
Taleizadeh (2016) studied pricing and lot sizing for an EPQ inventory model with rework and multiple shipments.
(2017) investigated a surface response optimization model for an EPQ system with imperfect production process under rework and shortage.
· In this research, the basic assumption of the EPQ inventory model with the rework process is that the rate of production minus defectives must always be larger than or equal to the demand.
A surface response optimization model for EPQ system with imperfect production process under rework and shortage.
Economic production quantity in batch manufacturing with imperfect quality, imperfect inspection, and destructive and non-destructive acceptance sampling in a two-tier market Computers & Industrial Engineering, Vol. 93, pp.
EPQ model for returned/reworked inventories during imperfect production process under price-sensitive stock-dependent demand.