An EPQ model for deteriorating production system and items with rework

Abstract

This paper investigates the economic production quantity model jointly considering product deterioration and a deteriorating production system with rework. In this imperfect deteriorating production system, not only does the machine produce defective product but also the machine is subjected to quality deterioration. To be more specific, the defective rate increases at certain time intervals. The defects produced are stored until the end of normal production process. Then they are reworked with extra cost to restore their quality and regarded as perfect product. The main objective is to minimize the total cost per unit product by determining the optimal combination of production run time and backlog quantity. Numerical experiments are carried out to illustrate the behavior of the inventory and show the impact of different parameters on the model. Discussion and conclusions are made at the end of the paper.