Simultaneous determination of production lot size and process parameters under process deterioration and process breakdown

• Published in: Omega (Oxford) Vol. 40; no. 6; pp. 774 - 781
• Main Author: Jeang, Angus
• Format: Journal Article
• Language: English
• Published: Kidlington Elsevier Ltd 01.12.2012; Elsevier; Pergamon Press Inc
• Series: Omega
• Subjects: Applied sciences; Costs; Decision making models; Exact sciences and technology; Firm modelling; Initial setting (process mean); Initial setting (process mean) Process tolerance Quadratic quality loss function Production lot size Process deterioration Process breakdown; Inventory; Inventory control, production control. Distribution; Inventory management; Kapazitätsplanung; Lagerhaltungsmodell; Losgröße; Mathematical functions; Operational research and scientific management; Operational research. Management science; Parameter estimation; Process breakdown; Process deterioration; Process tolerance; Production lot size; Production management; Prozessmanagement; Quadratic quality loss function; Studies; Workflow-Management-System; Initial setting (process mean); Process tolerance; Process breakdown; Process deterioration; Production lot size; Quadratic quality loss function; Tolerance; Loss system; Lot sizing; Modeling; Operating conditions; Loss function; Production management; Design process; Quality assurance; Deterioration; Production cost; Inventory control; Quadratic function; Quality management; Production process; Completion time
• DOI: 10.1016/j.omega.2011.12.005
• ISSN: 0305-0483

The purpose of this study is to combine production-inventory management with process-quality design for determining production lot size and process parameters under the possibility of process deterioration and breakdown. The total cost of such an integrated model includes: the combined setup cost (production setup and process resetting), the costs of quality loss, tolerance and mean costs for processes established, a penalty cost for process breakdown and carrying costs for cumulated inventory. The quadratic quality loss function is introduced to assess quality loss within the system. Decision variables include the initial setting (process mean) and process tolerance for process parameters determination, and production lot size for production-inventory management. The cycle time for production-inventory management is assumed to be the same as the resetting cycle for the new process-quality system. The contribution of this study lies in its development of an integrated model that enables process parameters, production lot size, and cycle time to be determined concurrently for quality and economic considerations, and at an earlier time in the process design and production management stage. An example is presented to demonstrate the proposed model. ► System includes inventory management and process design under deterioration and breakdown. ► Decision variables include initial setting, process tolerance, and lot size. ► Costs contain setup, quality loss, tolerance and mean, breakdown, and inventory.