Optimal manufacturing batch size with rework for a finite-horizon and time-varying demand rates inventory model

Benkherouf, Lakdere; Omar, Mohamed

RAIRO - Operations Research - Recherche Opérationnelle, Tome 51 (2017) no. 1, pp. 173-187.

This paper proposes a finite-horizon and time-varying demand rate function formulations for the optimal manufacturing batch size model with rework. The basic model is found in [Jamal et al. Comput. Ind. Eng. 47 (2004) 77–89.]. Two policies 1 and 2 are considered. In Policy 1 defective items produced in a given period are remanufactured within thesame period while Policy 2 accumulates the defective items until the last period. The search for the optimal manufacturing batch size for policies 1 and 2 is shown to reduce to the problem of determining the number of manufacturing-rework periods as well as their starting and finishing times. This leads to the examination of two mixed integer non-linear programming problem which are completely solved by appealing to some established techniques proposed in [Al-Khamis et al. Int. J. Syst. Sci. 45 (2014) 2196–2202]. Numerical results are also presented for illustration.

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