M. Khouja et A. Mehrez, ECONOMIC PRODUCTION LOT-SIZE MODEL WITH VARIABLE PRODUCTION-RATE AND IMPERFECT QUALITY, The Journal of the Operational Research Society, 45(12), 1994, pp. 1405-1417
Citations number
30
Categorie Soggetti
Management,"Operatione Research & Management Science","Operatione Research & Management Science
The classical economic production lot size (EPL) model assumes a const
ant production rate that is predetermined and inflexible, and perfect
quality. Recent models have removed the assumption of perfect quality
while maintaining the inflexible production rate assumption. Productio
n rates in many cases, such as orders filled by a machine, can be chan
ged. Moreover, unit production cost and process quality depend on the
production rate. In this paper, we extend the EPL model to cases where
the production rate is a decision variable. Unit production cost beco
mes a function of the production rate. Also, the quality of the produc
tion process deteriorates with increased production rate. We solve the
proposed model for special cost and quality functions and illustrate
the results with a numerical example. The results show that, for cases
where increases in the production rate lead to a significant deterior
ation in quality, the optimal production rate may be smaller than the
rate that minimizes unit production cost. For cases where quality is l
argely independent of the production rate, the optimal production rate
may be larger than the rate that minimizes unit production cost.