The finite production model with the reworking of defective items

This paper examines the finite production model with the reworking of defective items and shortage not permitted. In most practical settings, due to process deterioration or other factors, the generation of imperfect quality items is inevitable. In this study, the defective rate is assumed to be a random variable and all of the nonconforming items are reworked and repaired. When regular production process ends, the rework starts immediately. Repairing and holding costs for each reworked item are included in the proposed mathematical modeling and analysis. The optimal lot size that minimizes the expected overall costs for the imperfect quality finite production model is derived where shortages are not permitted. A numerical example is provided to demonstrate its practical usage.