Optimum production lot size for a perishable product under exponential demand with partial backordering and rework
DOI:
https://doi.org/10.31181/smeor11202416Keywords:
Economic Production Quantity (EPQ), Price discount, Rework, Imperfect Quality, Cost analysisAbstract
The management of inventory significantly impacts an organization's profitability. Numerous researchers have developed the production model tailored for decaying items to boost sales and minimize inventory, thereby increasing turnover ratios. This study focuses on the EPQ model for reworkable items under exponential combined with inventory dynamics. The primary objective is to optimize the production plan to manage maintenance costs effectively, ensuring optimal Leveraging human and technological resources. The research determines the optimal cycle length, backordered quantities, and production quantities to minimize overall costs. Specifically, penalties are incurred for excessive production times during rework and non-rework phases. This model finds applications in industries such as printed circuit board assembly in semiconductor manufacturing, metal parts, and plastic molding. The study concludes with numerical examples comparing total costs under the proposed model, supplemented by sensitivity analyses that explore the impacts of parameter variations on decision-making.
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