Determining Economic Manufacturing Quantity for an unreliable manufacturing system in discrete time setting. (2nd July 2008)

• Record Type: Journal Article
• Authors: Giri, B.C.; Dohi, T.
• Is Part Of: International journal of operational research. Volume 3:Number 5(2008)
• Page Start: 557
• Page End: 574
• Publication Date: 2008-07-02
• Subjects: discrete failure distribution -- repair time distribution -- machine failure -- machine repair -- optimal production policy -- economic manufacturing quantity -- EMQ -- unreliable manufacturing systems -- net present value -- NPV; Operations research -- Periodicals; 003.05
• Languages: English
• ISSNs: 1745-7645

Abstract

The paper considers an Economic Manufacturing Quantity (EMQ) problem for a failure-prone manufacturing system in which the production facility may fail at most once during a production cycle. In a discrete time framework, we formulate the model under general-failure and -repair (corrective) time distributions based on the Net Present Value (NPV) approach. As a special case, the model with general failure and constant repair times is considered. The traditional long-run average cost model is obtained from the NPV model by taking limitation on the discount rate. The criteria for the existence of a local optimal solution are derived for the NPV as well as the long-run average cost models. With numerical examples, the optimal production policies are determined and sensitivity of some model-parameters are examined. A comparison of the outcome of the proposed model with the one obtained by time discretisation in the corresponding continuous time model is also made.