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A production–repair inventory model with time-varying demand and multiple setups

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  • Omar, Mohd
  • Yeo, Ivan

Abstract

In this paper, we proposed a model for an inventory system that satisfies a continuous time-varying demand for a finished product over a known and finite planning horizon by supplying both new and repaired items. New items are fabricated from a single type of raw material procured from external suppliers, while used items are collected from the customers and then repaired to a condition that is as-good-as-new. During each time interval, new items and used items are produced from multiple production and repair runs. The problem is to determine a joint policy for raw materials procurement, new items fabrication, and used items repair such that the total relevant cost of the model is minimized. We also proposed a numerical solution procedure and we tested the model with some numerical examples and a simple sensitivity analysis.

Suggested Citation

  • Omar, Mohd & Yeo, Ivan, 2014. "A production–repair inventory model with time-varying demand and multiple setups," International Journal of Production Economics, Elsevier, vol. 155(C), pages 398-405.
    • Handle: RePEc:eee:proeco:v:155:y:2014:i:c:p:398-405
    DOI: 10.1016/j.ijpe.2013.12.034
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