An alternative analysis and solution procedure for the EPQ model with rework process at a single-stage manufacturing system with planned backorders

摘要

This paper revisits the work by Cardenas-Barron (Cardenas-Barron, L E., (2009). Economic production quantity with rework process at a single-stage manufacturing system with planned backorders. Computers and Industrial Engineering, 57(3), 1105-1113). The optimal solution condition is analyzed using the production time and the time to eliminate backorders as decision variables instead of the classical decisions variables of lot and backorder quantities. This new approach leads to an alternative inventory policy for imperfect quality items when the optimal production time is less than the optimal time. This is a new method that has not been explored before; it improves and complements the work by Cardenas-Barron (2009) and provides interesting managerial insights. An easy to apply solution procedure is provided to obtain the optimal policy. Finally, numerical examples are solved to illustrate our results.