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A flexible planning approach for integrated lot sizing and rework planning with random proportion of defective products

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  • Pierre Kohlmann
  • Florian Sahling

Abstract

We consider a stochastic capacitated lot sizing problem with in-line rework. Both defective and defect-free products can be the result of an imperfect production process in real-world production systems. However, the proportion of defective items in a production lot is subject to uncertainty. For economic and environmental reasons, the possibility to rework defective products appears reasonable since these products usually have considerable value. In this paper, a nonlinear model formulation for integrated lot sizing and rework planning is proposed. We use a sample average approach to approximate the generic nonlinear model formulation. To cope with the randomness of the proportion of defective products, we apply a flexible planning approach that allows the adjustment of production and rework quantities. We conduct extensive numerical investigations to evaluate the performance of the proposed planning approach.

Suggested Citation

  • Pierre Kohlmann & Florian Sahling, 2024. "A flexible planning approach for integrated lot sizing and rework planning with random proportion of defective products," International Journal of Production Research, Taylor & Francis Journals, vol. 62(19), pages 6961-6978, October.
    • Handle: RePEc:taf:tprsxx:v:62:y:2024:i:19:p:6961-6978
    DOI: 10.1080/00207543.2024.2314717
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