Article ID: | iaor2007545 |
Country: | United Kingdom |
Volume: | 38 |
Issue: | 1 |
Start Page Number: | 73 |
End Page Number: | 92 |
Publication Date: | Jan 2006 |
Journal: | Engineering Optimization |
Authors: | Kroll Dennis E., Lin Gary C. |
Keywords: | production, manufacturing industries, stochastic processes |
This article considers an economic manufacturing quantity model for an imperfect production process that is subject to random machine breakdowns. The product is manufactured intermittently in batches to meet a constant demand. During a production run, the system is assumed to deteriorate over time. As a result, a fixed proportion of items produced are defective. The system is also subject to random breakdowns. A no-resumption inventory control policy is adopted. Under this policy, the production run is aborted when a breakdown occurs. Production will be resumed only when all on-hand inventories are depleted. Corrective maintenance is carried out immediately after a breakdown. The time-to-shift and the time-to-breakdown are two random variables following different exponential distributions. The objective is to find an optimal production lot size that minimizes the expected (long-run) total cost per unit time. Several models are investigated and a numerical approach is developed to obtain an optimal production lot size.