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

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.