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On a volume flexible inventory model for items with an imperfect production system

Author

Listed:
  • Shib Sankar Sana
  • Suresh Kumar Goyal
  • Kripasindhu Chaudhuri

Abstract

A mathematical model is developed for volume flexible production system taking into account the effect of imperfect quality products. At the start of the production of a lot, the whole system is adjusted so that the process is 'in-control' state and items produced are of acceptable quality. During high rate of production, the process shifts from the 'in-control' state to the 'out-of-control 'state. In the 'out-of-control' state, the quality of products deteriorates resulting in defective items. The demand rate of some defective items which are suitable for sale at reduced price is considered as a function of reduction rate of selling price. The proposed model is graphically illustrated with numerical examples and optimised by Mathematica Software. Sensitivity analysis is undertaken and various issues regarding the sale of imperfect quality products are discussed.

Suggested Citation

  • Shib Sankar Sana & Suresh Kumar Goyal & Kripasindhu Chaudhuri, 2007. "On a volume flexible inventory model for items with an imperfect production system," International Journal of Operational Research, Inderscience Enterprises Ltd, vol. 2(1), pages 64-80.
    • Handle: RePEc:ids:ijores:v:2:y:2007:i:1:p:64-80
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    Citations

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    Cited by:

    1. Sana, Shib Sankar, 2010. "A production-inventory model in an imperfect production process," European Journal of Operational Research, Elsevier, vol. 200(2), pages 451-464, January.
    2. Luis Aguilera Enriquez & Octavio Hernandez Castorena & Oscar Perez Veyna, 2015. "RELATIONSHIP SUPPLY CHAIN MANAGEMENT AND INFORMATION TECHNOLOGY AND COMMUNICATION IN PRODUCTION PROCESSES TO IMPROVE COMPETITIVENESS OF MANUFACTURING SMEs IN AGUASCALIENTES,LA RELACION DE LA GESTION D," Revista Internacional Administracion & Finanzas, The Institute for Business and Finance Research, vol. 8(1), pages 79-91.
    3. Sana, Shib Sankar, 2010. "An economic production lot size model in an imperfect production system," European Journal of Operational Research, Elsevier, vol. 201(1), pages 158-170, February.

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