Title: Economic optimisation for an imperfect production system with rework and scrap rate

Authors: Jen-Ming Chen, Ya-Hui Lin, Yan-Chun Chen

Addresses: Institute of Industrial Management, National Central University, No. 300, Jhongda Road, Jhongli, Taoyuan 32001, Taiwan. ' Institute of Industrial Management, National Central University, No. 300, Jhongda Road, Jhongli, Taoyuan 32001, Taiwan. ' Department of Industrial Engineering and Management, Tungnan University, Shen-Keng, Taipei 22202, Taiwan

Abstract: This paper developed an integrated model in considering the situations of an imperfect process with imperfect maintenance and shortage, and an imperfect rework process for the determination of economic production quantity. This imperfect process has a general deterioration distribution with increasing hazard rate. Even with periodic preventive maintenance, such a production system cannot be recovered as good as new. As the process produces non-conforming items, a percentage of them are scrapped and the others are reworked. There is a percentage of the reworking items fail the repairing and become scrap items in the imperfect rework process. We use numerical analyses to simulate the effect of changes in the various parameters on the optimal solution. And look at the optimal inspection interval, inspection frequency and production quantity that maximum total profit which the advantages of rework process were explored.

Keywords: economic production quantity; EPQ; imperfect production systems; preventive maintenance; integrated models; shortages; rework processes; deterioration distribution; hazard rates; non-conforming items; scrap rate; reworking; numerical analysis; parameter changes; optimal solutions; inspection intervals; inspection frequency; profit maximisation; industrial engineering; systems engineering.

DOI: 10.1504/IJISE.2010.033999

International Journal of Industrial and Systems Engineering, 2010 Vol.6 No.1, pp.92 - 109

Published online: 06 Jul 2010 *

Full-text access for editors Full-text access for subscribers Purchase this article Comment on this article