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Optimal Location of Inspection Stations in a Multistage Production Process

Author

Listed:
  • Gary D. Eppen

    (Graduate School of Business, University of Chicago)

  • E. Gerald Hurst, Jr.

    (Wharton School, University of Pennsylvania)

Abstract

A method for determining where to locate the inspection stations in a multistage production process with imperfect inspection is presented. Dynamic programming is used to establish that the optimal expected total cost function at every stage is piecewise linear and concave. While the optimal policy at every stage usually consists of one "inspect" region and one "do not inspect" region, this policy structure is found not to hold in general. A computation scheme based directly on the dynamic programming formulation is proposed, a time-sharing computer program is discussed, and the results of an example problem are presented.

Suggested Citation

  • Gary D. Eppen & E. Gerald Hurst, Jr., 1974. "Optimal Location of Inspection Stations in a Multistage Production Process," Management Science, INFORMS, vol. 20(8), pages 1194-1200, April.
    • Handle: RePEc:inm:ormnsc:v:20:y:1974:i:8:p:1194-1200
    DOI: 10.1287/mnsc.20.8.1194
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    Cited by:

    1. Van Volsem, Sofie & Dullaert, Wout & Van Landeghem, Hendrik, 2007. "An Evolutionary Algorithm and discrete event simulation for optimizing inspection strategies for multi-stage processes," European Journal of Operational Research, Elsevier, vol. 179(3), pages 621-633, June.
    2. Chang, Seokcheol & Klabjan, Diego & Vossen, Thomas, 2010. "Optimal radio frequency identification deployment in a supply chain network," International Journal of Production Economics, Elsevier, vol. 125(1), pages 71-83, May.
    3. Yu, Hong-Fwu & Yu, Wen-Ching, 2007. "An optimal mixed policy of inspection and burn-in and the optimal production quantity," International Journal of Production Economics, Elsevier, vol. 105(2), pages 483-491, February.
    4. Jie Ding & Betsy S. Greenberg & Hirofumi Matsuo, 1998. "Repetitive Testing Strategies When the Testing Process Is Imperfect," Management Science, INFORMS, vol. 44(10), pages 1367-1378, October.
    5. Jewkes, Elizabeth M., 1995. "Optimal inspection effort and scheduling for a manufacturing process with repair," European Journal of Operational Research, Elsevier, vol. 85(2), pages 340-351, September.
    6. Rebello, Ranjit & Agnetis, Alessandro & Mirchandani, Pitu B., 1995. "Specialized inspection problems in serial production systems," European Journal of Operational Research, Elsevier, vol. 80(2), pages 277-296, January.
    7. Paul F. Zantek & Gordon P. Wright & Robert D. Plante, 2002. "Process and Product Improvement in Manufacturing Systems with Correlated Stages," Management Science, INFORMS, vol. 48(5), pages 591-606, May.
    8. Gurnani, Haresh & Drezner, Zvi & Akella, Ram, 1996. "Capacity planning under different inspection strategies," European Journal of Operational Research, Elsevier, vol. 89(2), pages 302-312, March.

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