Article ID: | iaor20072245 |
Country: | India |
Volume: | 27 |
Issue: | 3 |
Start Page Number: | 565 |
End Page Number: | 576 |
Publication Date: | Sep 2006 |
Journal: | Journal of Information & Optimization Sciences |
Authors: | Chiu Singa Wang |
Keywords: | maintenance, repair & replacement |
This paper studies effects of repair cost on the rework decision-making in an imperfect quality Economic Production Quantity (EPQ) model. The optimal lot sizes and the expected annual inventory costs for the cases of EPQ model with a rework process and without any reworking of defective items are compared and analyzed. With straightforward numerical derivations, this note proposes a set of mathematical equations to assist in determining on whether it is beneficial or not to rework. Sensitivity analysis and numerical example are provided to demonstrate their practical usages.