Economic production quantity models for imperfect product and service with rework

TL;DR

This paper develops two EPQ models for managing imperfect products with rework in systems with deterioration, providing analytical solutions and numerical examples to optimize inventory and production processes.

Contribution

It introduces novel EPQ models for imperfect, deteriorating items with rework, applicable to single and multi-plant systems, with analytical solutions.

Findings

Models effectively optimize inventory levels and production schedules.

Analytical solutions facilitate decision-making in complex systems.

Numerical examples demonstrate practical applicability.

Abstract

When imperfect quality products are produced in a production process, rework may be performed to make them become serviceable. In an inventory system, items may deteriorate. Selling deteriorated items to customers will create negative impact on corporate image. In this paper, two economic production quantity (EPQ) models are proposed for deteriorating items with rework process. A single production-rework plant system and a system consists of $n$ production plants and one rework plant are considered. Approximated analytic results are obtained and numerical examples are provided to illustrate the solution procedure.