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    Title: An arithmetic-geometric mean inequality approach for determining the optimal production lot size with backlogging and imperfect rework process
    Authors: Chang, Chun-Tao;Ouyang, Liang-Yuh
    Keywords: Production;Random defective rate;Failure in repair;Backlogging;Arithmetic-geometric mean inequality
    Date: 2017-02-01
    Issue Date: 2016-10-22 02:11:48 (UTC+8)
    Publisher: Shanghai Shifan Daxue,Shanghai Normal University
    Abstract: Some classical studies on economic production quantity (EPQ) models with imperfect production processes and complete backlogging have focused on determining the optimal lot size. However, these models neglect the fact that the total production-inventory costs can be reduced by reworking imperfect items for a relatively small repair and holding cost. To account for the above phenomenon, we take the out of stock and repair failures into account and establish an EPQ model with imperfect production processes, failure in repair and complete backlogging. Furthermore, we assume that the holding cost of imperfect items is distinguished from that of perfect ones, as well as, the costs of repair, disposal, and shortage are all included in the proposed model. In addition, without taking complex differential calculus to determine the optimal production lot size and backorder level, we employ an arithmetic-geometric mean inequality method to determine the optimal solutions. Finally, numerical examples and sensitivity analysis are analyzed to illustrate the validity of the proposed model. Some managerial insights are obtained from the numerical examples.
    Relation: Journal of Applied Analysis and Computation 7(1), p.224-235
    DOI: 10.11948/2017015
    Appears in Collections:[統計學系暨研究所] 期刊論文

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