Economic production quantity model based on extended cost parameters for imperfect process and defective items

The inventory includes the elements to construct the products that finally will appear as completed goods. The main purpose for the inventory management is effectively utilizing inventories in the manufacturing system to meet customer requirements and bring about the minimum total cost. The classic...

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Main Author:	Shahraki, Mohammad Reza
Format:	Thesis
Language:	English
Published:	2011
Subjects:	Manufacturing Total quality management Mathematical models
Online Access:	http://psasir.upm.edu.my/id/eprint/42198/1/FK%202011%2064R.pdf
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spelling	my-upm-ir.421982016-03-10T05:15:12Z Economic production quantity model based on extended cost parameters for imperfect process and defective items 2011-08 Shahraki, Mohammad Reza The inventory includes the elements to construct the products that finally will appear as completed goods. The main purpose for the inventory management is effectively utilizing inventories in the manufacturing system to meet customer requirements and bring about the minimum total cost. The classic Economic Production Quantity (EPQ) model is a mathematical model, which determines the lot sizing in a production process so that minimizes the total inventory holding cost and set up cost. The classic EPQ model is assumed that the product quality is always perfect; therefore, the quality cost is not considered as an issue to influence the production lot size. This research aims to extend the existing body of knowledge on the imperfect-quality inventory problem by developing a new inventory model that relaxes some of the previous common assumptions of the EPQ models. The main objective is to minimize the total cost of inventory and quality in a manufacturing system with a single product, and a batch production process. The proposed EPQ model identifies the costs that exist because of poor quality and their effects on the optimal lot size and total cost. The sensitivity analysis is employed to show changes in the optimal production lot size and total cost from variations in the various parameters of the proposed EPQ model. The statistical hypothesis tests demonstrated that the total cost of the proposed EPQ model significantly less than previous EPQ models. The results indicated that the production rate, demand rate, holding cost of returned items, scrap rate, defective rate, warranty cost, lost sale cost, lost sale cost, and holding cost of scrap items have extensive effect on the total cost of manufacturing system. Manufacturing Total quality management Mathematical models 2011-08 Thesis http://psasir.upm.edu.my/id/eprint/42198/ http://psasir.upm.edu.my/id/eprint/42198/1/FK%202011%2064R.pdf application/pdf en public phd doctoral Universiti Putra Malaysia Manufacturing Total quality management Mathematical models
institution	Universiti Putra Malaysia
collection	PSAS Institutional Repository
language	English
topic	Manufacturing Total quality management Mathematical models
spellingShingle	Manufacturing Total quality management Mathematical models Shahraki, Mohammad Reza Economic production quantity model based on extended cost parameters for imperfect process and defective items
description	The inventory includes the elements to construct the products that finally will appear as completed goods. The main purpose for the inventory management is effectively utilizing inventories in the manufacturing system to meet customer requirements and bring about the minimum total cost. The classic Economic Production Quantity (EPQ) model is a mathematical model, which determines the lot sizing in a production process so that minimizes the total inventory holding cost and set up cost. The classic EPQ model is assumed that the product quality is always perfect; therefore, the quality cost is not considered as an issue to influence the production lot size. This research aims to extend the existing body of knowledge on the imperfect-quality inventory problem by developing a new inventory model that relaxes some of the previous common assumptions of the EPQ models. The main objective is to minimize the total cost of inventory and quality in a manufacturing system with a single product, and a batch production process. The proposed EPQ model identifies the costs that exist because of poor quality and their effects on the optimal lot size and total cost. The sensitivity analysis is employed to show changes in the optimal production lot size and total cost from variations in the various parameters of the proposed EPQ model. The statistical hypothesis tests demonstrated that the total cost of the proposed EPQ model significantly less than previous EPQ models. The results indicated that the production rate, demand rate, holding cost of returned items, scrap rate, defective rate, warranty cost, lost sale cost, lost sale cost, and holding cost of scrap items have extensive effect on the total cost of manufacturing system.
format	Thesis
qualification_name	Doctor of Philosophy (PhD.)
qualification_level	Doctorate
author	Shahraki, Mohammad Reza
author_facet	Shahraki, Mohammad Reza
author_sort	Shahraki, Mohammad Reza
title	Economic production quantity model based on extended cost parameters for imperfect process and defective items
title_short	Economic production quantity model based on extended cost parameters for imperfect process and defective items
title_full	Economic production quantity model based on extended cost parameters for imperfect process and defective items
title_fullStr	Economic production quantity model based on extended cost parameters for imperfect process and defective items
title_full_unstemmed	Economic production quantity model based on extended cost parameters for imperfect process and defective items
title_sort	economic production quantity model based on extended cost parameters for imperfect process and defective items
granting_institution	Universiti Putra Malaysia
publishDate	2011
url	http://psasir.upm.edu.my/id/eprint/42198/1/FK%202011%2064R.pdf
_version_	1747811899873951744

Economic production quantity model based on extended cost parameters for imperfect process and defective items

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