IDEAS home Printed from https://ideas.repec.org/a/spr/annopr/v287y2020i1d10.1007_s10479-019-03423-8.html
   My bibliography  Save this article

Innovative maintenance problem in a two-stage production-inventory system with imperfect processes

Author

Listed:
  • Rung-Hung Su

    (Fu Jen Catholic University)

  • Ming-Wei Weng

    (Chaoyang University of Technology)

  • Yung-Fu Huang

    (Chaoyang University of Technology)

Abstract

The specification of a product is frequently changed to satisfy new requirement from market buyers. To maintain market competitiveness, manufacturers must plan innovative production and sale strategies to achieve maximum benefit. This activity is known as innovative maintenance (IM). In this paper, we therefore consider a two-stage production-inventory model with replacement and imperfect component processes during which the components replacement is a common issue of IM. We then find the optimal production and sale strategies that minimize the total cost per unit time. An algorithm is proposed to find these optimal solutions. Finally, we quote two numerical examples from the Taiwan polyurethane industry to illustrate the proposed model and algorithm. Sensitivity analysis is also performed to obtain some managerial insights.

Suggested Citation

  • Rung-Hung Su & Ming-Wei Weng & Yung-Fu Huang, 2020. "Innovative maintenance problem in a two-stage production-inventory system with imperfect processes," Annals of Operations Research, Springer, vol. 287(1), pages 379-401, April.
    • Handle: RePEc:spr:annopr:v:287:y:2020:i:1:d:10.1007_s10479-019-03423-8
    DOI: 10.1007/s10479-019-03423-8
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s10479-019-03423-8
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s10479-019-03423-8?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Sarker, Bhaba R. & Jamal, A.M.M. & Mondal, Sanjay, 2008. "Optimal batch sizing in a multi-stage production system with rework consideration," European Journal of Operational Research, Elsevier, vol. 184(3), pages 915-929, February.
    2. W. Pearn & R. Su & M. Weng & C. Hsu, 2011. "Optimal production run time for two-stage production system with imperfect processes and allowable shortages," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 19(4), pages 533-545, December.
    3. Darwish, M.A. & Ben-Daya, M., 2007. "Effect of inspection errors and preventive maintenance on a two-stage production inventory system," International Journal of Production Economics, Elsevier, vol. 107(1), pages 301-313, May.
    4. Ata Allah Taleizadeh, 2018. "A constrained integrated imperfect manufacturing-inventory system with preventive maintenance and partial backordering," Annals of Operations Research, Springer, vol. 261(1), pages 303-337, February.
    5. Liao, Gwo-Liang & Chen, Yen Hung & Sheu, Shey-Huei, 2009. "Optimal economic production quantity policy for imperfect process with imperfect repair and maintenance," European Journal of Operational Research, Elsevier, vol. 195(2), pages 348-357, June.
    6. Naoufel Cheikhrouhou & Biswajit Sarkar & Baishakhi Ganguly & Asif Iqbal Malik & Rafael Batista & Young Hae Lee, 2018. "Optimization of sample size and order size in an inventory model with quality inspection and return of defective items," Annals of Operations Research, Springer, vol. 271(2), pages 445-467, December.
    7. Ben-Daya, Mohamed, 2002. "The economic production lot-sizing problem with imperfect production processes and imperfect maintenance," International Journal of Production Economics, Elsevier, vol. 76(3), pages 257-264, April.
    8. H. Wang & H. Pham, 1999. "Some maintenance models and availability withimperfect maintenance in production systems," Annals of Operations Research, Springer, vol. 91(0), pages 305-318, January.
    9. Chen, Sheng-Chih & Teng, Jinn-Tsair & Skouri, Konstantina, 2014. "Economic production quantity models for deteriorating items with up-stream full trade credit and down-stream partial trade credit," International Journal of Production Economics, Elsevier, vol. 155(C), pages 302-309.
    10. Teng, Jinn-Tsair & Lou, Kuo-Ren & Wang, Lu, 2014. "Optimal trade credit and lot size policies in economic production quantity models with learning curve production costs," International Journal of Production Economics, Elsevier, vol. 155(C), pages 318-323.
    11. Lee, Hsu-Hua, 2008. "The investment model in preventive maintenance in multi-level production systems," International Journal of Production Economics, Elsevier, vol. 112(2), pages 816-828, April.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Arash Sepehri & Mohammad Reza Gholamian, 2023. "A green inventory model with imperfect items considering inspection process and quality improvement under different shortages scenarios," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(4), pages 3269-3297, April.
    2. Rung-Hung Su & Dong-Yuh Yang & He-Jhen Lin & Yu-Cheng Yang, 2023. "Estimating conservative profitability of a newsboy-type product with exponentially distributed demand based on multiple samples," Annals of Operations Research, Springer, vol. 322(2), pages 967-989, March.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Sarkar, Biswajit & Saren, Sharmila, 2016. "Product inspection policy for an imperfect production system with inspection errors and warranty cost," European Journal of Operational Research, Elsevier, vol. 248(1), pages 263-271.
    2. Al-Salamah, Muhammad, 2019. "Economic production quantity in an imperfect manufacturing process with synchronous and asynchronous flexible rework rates," Operations Research Perspectives, Elsevier, vol. 6(C).
    3. Taleizadeh, Ata Allah & Cárdenas-Barrón, Leopoldo Eduardo & Mohammadi, Babak, 2014. "A deterministic multi product single machine EPQ model with backordering, scraped products, rework and interruption in manufacturing process," International Journal of Production Economics, Elsevier, vol. 150(C), pages 9-27.
    4. Kazaz, Burak & Sloan, Thomas W., 2013. "The impact of process deterioration on production and maintenance policies," European Journal of Operational Research, Elsevier, vol. 227(1), pages 88-100.
    5. W. Pearn & R. Su & M. Weng & C. Hsu, 2011. "Optimal production run time for two-stage production system with imperfect processes and allowable shortages," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 19(4), pages 533-545, December.
    6. Bouslah, Bassem & Gharbi, Ali & Pellerin, Robert, 2013. "Joint optimal lot sizing and production control policy in an unreliable and imperfect manufacturing system," International Journal of Production Economics, Elsevier, vol. 144(1), pages 143-156.
    7. Peng, Hao & van Houtum, Geert-Jan, 2016. "Joint optimization of condition-based maintenance and production lot-sizing," European Journal of Operational Research, Elsevier, vol. 253(1), pages 94-107.
    8. Feng, Lin & Chan, Ya-Lan, 2019. "Joint pricing and production decisions for new products with learning curve effects under upstream and downstream trade credits," European Journal of Operational Research, Elsevier, vol. 272(3), pages 905-913.
    9. Juanjuan Qin & Aina Zhang & Liangjie Xia & Mengqi Liu, 2017. "Retail Order-Taking Strategies Under Competing Trade Credit Policies With Varying Demands," Asia-Pacific Journal of Operational Research (APJOR), World Scientific Publishing Co. Pte. Ltd., vol. 34(01), pages 1-17, February.
    10. Da Wen & Pan Ershun & Wang Ying & Liao Wenzhu, 2016. "An economic production quantity model for a deteriorating system integrated with predictive maintenance strategy," Journal of Intelligent Manufacturing, Springer, vol. 27(6), pages 1323-1333, December.
    11. Gouiaa-Mtibaa, A. & Dellagi, S. & Achour, Z. & Erray, W., 2018. "Integrated Maintenance-Quality policy with rework process under improved imperfect preventive maintenance," Reliability Engineering and System Safety, Elsevier, vol. 173(C), pages 1-11.
    12. Amir Hossein Nobil & Amir Hosein Afshar Sedigh & Leopoldo Eduardo Cárdenas-Barrón, 2020. "A multiproduct single machine economic production quantity (EPQ) inventory model with discrete delivery order, joint production policy and budget constraints," Annals of Operations Research, Springer, vol. 286(1), pages 265-301, March.
    13. Ata Allah Taleizadeh, 2018. "A constrained integrated imperfect manufacturing-inventory system with preventive maintenance and partial backordering," Annals of Operations Research, Springer, vol. 261(1), pages 303-337, February.
    14. Li, Ruihai & Skouri, Konstantina & Teng, Jinn-Tsair & Yang, Wen-Goang, 2018. "Seller's optimal replenishment policy and payment term among advance, cash, and credit payments," International Journal of Production Economics, Elsevier, vol. 197(C), pages 35-42.
    15. K-L Hou, 2005. "Optimal production run length for deteriorating production system with a two-state continuous-time Markovian processes under allowable shortages," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 56(3), pages 346-350, March.
    16. Bikash Koli Dey & Hyesung Seok, 2024. "Intelligent inventory management with autonomation and service strategy," Journal of Intelligent Manufacturing, Springer, vol. 35(1), pages 307-330, January.
    17. Luis A. San-José & Joaquín Sicilia & Manuel González-de-la-Rosa & Jaime Febles-Acosta, 2022. "Profit maximization in an inventory system with time-varying demand, partial backordering and discrete inventory cycle," Annals of Operations Research, Springer, vol. 316(2), pages 763-783, September.
    18. Johannes Freiesleben & Nicolas Gu'erin, 2015. "Homogenization and Clustering as a Non-Statistical Methodology to Assess Multi-Parametrical Chain Problems," Papers 1505.03874, arXiv.org, revised Dec 2017.
    19. Levitin, Gregory & Finkelstein, Maxim & Dai, Yuanshun, 2018. "Optimizing availability of heterogeneous standby systems exposed to shocks," Reliability Engineering and System Safety, Elsevier, vol. 170(C), pages 137-145.
    20. Chiu, Singa Wang, 2008. "Production lot size problem with failure in repair and backlogging derived without derivatives," European Journal of Operational Research, Elsevier, vol. 188(2), pages 610-615, July.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:annopr:v:287:y:2020:i:1:d:10.1007_s10479-019-03423-8. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.