EFFECTS OF REJECTS ON IN-PROCESS INVENTORIES IN SERIAL PRODUCTION LINES

This paper reports the results of a simulation study that determines t he effects of rejects on in-process inventory levels. The production l ine is made up of several stations or stages organised in series, and rejects can occur at any stage along the line. The long-term average r eject proportion at each stage is specified, and rejects occur accordi ng to the binomial statistical distribution. The results indicate that in-process inventories will be higher in the early stages of the line and will also depend on the average reject proportions at the various stages. The results of the paper will help management determine just where on the production line its quality management efforts should be directed to reduce in-process inventories and hence improve efficiency .