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Optimal production run time for two-stage production system with imperfect processes and allowable shortages

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  • W. Pearn
  • R. Su
  • M. Weng
  • C. Hsu

Abstract

This paper considers a two-stage production system with imperfect processes. Shortages are allowed, and the unsatisfied demand is completely backlogged. In addition, the capital investment in process quality improvement is adopted. Under these assumptions, we first formulate the proposed problem as a cost minimization model where the production run time and process quality are decision variables. Then we develop the criterion for judging whether the optimal solution not only exists but also is unique. If the criterion is not satisfied, the production system should not be opened. An algorithm for the computations of the optimal solutions is also provided. Finally, a numerical example and sensitivity analysis are carried out to illustrate the model. Copyright Springer-Verlag 2011

Suggested Citation

  • 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.
    • Handle: RePEc:spr:cejnor:v:19:y:2011:i:4:p:533-545
    DOI: 10.1007/s10100-010-0143-x
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    References listed on IDEAS

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    1. Hill, Roger M., 2000. "On optimal two-stage lot sizing and inventory batching policies," International Journal of Production Economics, Elsevier, vol. 66(2), pages 149-158, June.
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    3. Kim, DaeSoo, 1999. "Optimal two-stage lot sizing and inventory batching policies," International Journal of Production Economics, Elsevier, vol. 58(3), pages 221-234, January.
    4. Hyun Kim, Chang & Hong, Yushin, 1999. "An optimal production run length in deteriorating production processes," International Journal of Production Economics, Elsevier, vol. 58(2), pages 183-189, January.
    5. Evan L. Porteus, 1986. "Optimal Lot Sizing, Process Quality Improvement and Setup Cost Reduction," Operations Research, INFORMS, vol. 34(1), pages 137-144, February.
    6. 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.
    7. 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.
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    Cited by:

    1. 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.
    2. Chen, Cheng-Kang & Lo, Chih-Chung & Weng, Tzu-Chun, 2017. "Optimal production run length and warranty period for an imperfect production system under selling price dependent on warranty period," European Journal of Operational Research, Elsevier, vol. 259(2), pages 401-412.

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