TY - JOUR
T1 - On a production-inventory system of deteriorating items subject to random machine breakdowns with a fixed repair time
AU - Lin, Gary C.
AU - Gong, Dah Chuan
PY - 2006/4
Y1 - 2006/4
N2 - This paper considers the impact of random machine breakdowns on the classical Economic Production Quantity (EPQ) model for a product subject to exponential decay and under a no-resumption (NR) inventory control policy. A product is manufactured in batches on a machine that is subject to random breakdowns in order to meet a constant demand over an infinite planning horizon. The product is assumed to have a significant rate of deterioration and time to deterioration is described by an exponential distribution. Also, the time-to-breakdown is a random variable following an exponential distribution. Under the NR policy, when a breakdown occurs during a production run, the run is immediately aborted. A new run will not be started until all available inventories are depleted. Corrective maintenance of the production system is carried out immediately after a breakdown and it takes a fixed period of time to complete such an activity. The objective is to determine the optimal production uptime that minimizes the expected total cost per unit time consisting of setup, corrective maintenance, inventory carrying, deterioration, and lost sales costs. A near optimal production uptime is derived under conditions of continuous review, deterministic demand, and no shortages.
AB - This paper considers the impact of random machine breakdowns on the classical Economic Production Quantity (EPQ) model for a product subject to exponential decay and under a no-resumption (NR) inventory control policy. A product is manufactured in batches on a machine that is subject to random breakdowns in order to meet a constant demand over an infinite planning horizon. The product is assumed to have a significant rate of deterioration and time to deterioration is described by an exponential distribution. Also, the time-to-breakdown is a random variable following an exponential distribution. Under the NR policy, when a breakdown occurs during a production run, the run is immediately aborted. A new run will not be started until all available inventories are depleted. Corrective maintenance of the production system is carried out immediately after a breakdown and it takes a fixed period of time to complete such an activity. The objective is to determine the optimal production uptime that minimizes the expected total cost per unit time consisting of setup, corrective maintenance, inventory carrying, deterioration, and lost sales costs. A near optimal production uptime is derived under conditions of continuous review, deterministic demand, and no shortages.
KW - Deteriorating item
KW - Economic production quantity model
KW - Fixed repair time
KW - Inventory
KW - Random machine breakdown
UR - https://www.scopus.com/pages/publications/33645033021
U2 - 10.1016/j.mcm.2005.12.013
DO - 10.1016/j.mcm.2005.12.013
M3 - Article
AN - SCOPUS:33645033021
SN - 0895-7177
VL - 43
SP - 920
EP - 932
JO - Mathematical and Computer Modelling
JF - Mathematical and Computer Modelling
IS - 7-8
ER -