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Abstract
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Article Information:
Replenishment Decision Making with Permissible Shortage, Repairable Nonconforming Products and Random Equipment Failure
Huei-Hsin Chang, Singa Wang Chiu and Yuan-Shyi Peter Chiu
Corresponding Author: S.W. Chiu
Submitted: March 12, 2012
Accepted: March 26, 2012
Published: October 15, 2012 |
Abstract:
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This study is concerned with replenishment decision making with repairable nonconforming
products, backordering and random equipment failure during production uptime. In real world manufacturing
systems, due to different factors generation of nonconforming items and unexpected machine breakdown are
inevitable. Also, in certain business environments various situations between vendor and buyer, the
backordering of shortage stocks sometimes is permissible with extra cost involved. This study incorporates
backlogging, random breakdown and rework into a production system, with the objective of determination of
the optimal replenishment lot size and optimal level of backordering that minimizes the long-run average
system costs. Mathematical modeling along with the renewal reward theorem is employed for deriving system
cost function. Hessian matrix equations are used to prove its convexity. Research result can be directly adopted
by practitioners in the production planning and control field to assist them in making their own robust
production replenishment decision.
Key words: Backordering , equipment failure, production planning and control, repairable defects, , ,
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Cite this Reference:
Huei-Hsin Chang, Singa Wang Chiu and Yuan-Shyi Peter Chiu, . Replenishment Decision Making with Permissible Shortage, Repairable Nonconforming Products and Random Equipment Failure. Research Journal of Applied Sciences, Engineering and Technology, (20): 4072-4080.
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ISSN (Online): 2040-7467
ISSN (Print): 2040-7459 |
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