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Title: Determining a production run time for an imperfect production-inventory system with scrap
Authors: Lin, Gary C
Lin, Hong-Dar
Keywords: Inventory
Stochastic processes
Issue Date: Sep-2007
Publisher: CSIR
Abstract: A production-inventory model is proposed for a manufacturing process used to produce a single product in batches to meet a deterministic demand. The process is assumed to be in-control at the start of a production run. Then, the process may shift to an out-of-control state at a random point in time, and a fixed portion of items produced is defective. These defective items cannot be repaired or reworked and must be scrapped with an additional cost. Models are proposed to deal with situations regarding whether and when a screening process is implemented. The objective is to determine an optimal production run time that minimizes expected (long-run) average cost per unit of time including setup, production, inventory holding, screening, and defective costs. A numerical approach is developed for finding an optimal solution. A closed-form solution, which is derived based on an approximation to an exponential function, is also given.
Page(s): 724-735
ISSN: 0022-4456
Source:JSIR Vol.66(09) [September 2007]

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