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Combining an alternative multi-delivery policy into economic production lot size problem with partial rework
Abstract:

This paper combines an alternative multi-delivery policy into an imperfect economic production quantity EPQ) model with partial rework, with the purpose of reducing supplier’s stock holding cost. We extend the problem examined by Chiu et al. [Chiu, Y.-S. P, Chiu, S. W., Li, C.-Y., & Ting, C.-K. (2009). Incorporating multi–delivery policy and quality assurance into economic production lot size problem. Journal of Scientific and Industrial Research, 68(6), 505–512] by considering an n + 1 delivery policy in lieu of n multidelivery plan for the specific EPQ model with partial rework. Under such a policy, an initial delivery of perfect (finished) items is distributed to customer for satisfying product demand during manufacturer’s regular production time and rework time. At the end of rework, fixed quantity n installments of the finished products are delivered to customer at a fixed interval of time. As a result, a closed-form optimal replenishment batch size solution to the problem is obtained. A numerical example with analysis and comparison is provided to show practical usage of the proposed model and demonstrate its significant savings in stock holding cost

Keywords: Replenishment lot size Discontinuous issuing policy EPQ model Multiple deliveries Rework Scrap
Author(s): .
Source: Expert Systems with Applications 39 (2012) 2578–2583
Subject: تولید
Category: مقاله مجله
Release Date: 2012
No of Pages: 6
Price(Tomans): 0
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