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Economic production quantity model with a shifting production rate
Author(s) -
BenDaya Mohamed,
Hariga Moncer,
Khursheed Syed Naveed
Publication year - 2008
Publication title -
international transactions in operational research
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.032
H-Index - 52
eISSN - 1475-3995
pISSN - 0969-6016
DOI - 10.1111/j.1475-3995.2007.00620.x
Subject(s) - production (economics) , economic production quantity , inefficiency , production rate , quality (philosophy) , economics , sizing , product (mathematics) , computer science , econometrics , microeconomics , mathematics , process engineering , engineering , philosophy , geometry , epistemology , art , visual arts
Typical models for determining the economic production quantity (EPQ) assume perfect product quality and perfect production processes. Deteriorating processes may affect production systems in several ways. They may decrease the quality of the items produced, cause production stoppage and breakdowns and/or reduce the production rate due to production process inefficiency. The purpose of this paper is to present an EPQ model that incorporates the effect of shifts in production rate on lot sizing decisions due to speed losses. The cycle starts with a certain production rate and after a random time, the production rate shifts to a lower value. A mathematical model to determine the optimal production policy under these conditions is developed and analyzed. Numerical examples are presented for illustrative purposes.