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Economic Manufacturing Quantity Model with Machine Failure, Overtime and Rework/Disposal of Nonconforming Items

Chiu Singa Wang, Chiu Tiffany, Chiu Yuan-Shyi Peter, Lin Hong-Dar

Management and Production Engineering Review

2021

Vol. 12, No. 1

3--16

To increase their competitive advantage in turbulent marketplaces, contemporary manufacturers must show determination in seeking ways to: fulfill buyer orders with quality merchandise; meet deadlines; handle unexpected production disruptions; and lower the total relevant expense. To tackle the abovementioned challenges, this study explores an economic manufacturing quantity (EMQ) model with machine failure, overtime, and rework/disposal of nonconforming items; the goal is to find the best fabrication uptime that minimizes total relevant expenses. Specifically, we consider a production unit with overtime capacity as an operational feature that is linked to higher unit and setup costs. Further, its EMQ-based process is subject to random nonconforming items and failure rates. Extra screening separates the reworkable nonconforming items from scrap, and the rework is executed at the end of each cycle of regular fabrication. The failures follow a Poisson distribution, and a machine repair task starts as soon as a failure occurs; the fabrication of the lot that was interrupted resumes after the repair has been carried out. A decision model is built to capture the characteristics of the problem. Mathematical and optimization processes help in determining the optimal fabrication uptime. A numerical example not only illustrates the applicability of the research outcomes, but also reveals a diverse set of information about the individual or joint influences of deviations in mean-time-to-failure, overtime factors, and rework/disposal ratios linked to nonconforming rates related to the optimal replenishment uptime, total operating expenses, and various cost contributors; this facilitates better decision making.