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Mathematical and Computational Applications is published by MDPI from Volume 21 Issue 1 (2016). Articles in this Issue were published by another publisher in Open Access under a CC-BY (or CC-BY-NC-ND) licence. Articles are hosted by MDPI on as a courtesy and upon agreement with the previous journal publisher.
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Math. Comput. Appl. 2011, 16(2), 329-339;

Optimal Lot Sizing with Scrap and Random Breakdown Occurring in Backorder Replenishing Period

Department of Industrial Engineering and Management, Chaoyang University of Technology, Wufong, Taichung 413, Taiwan
Author to whom correspondence should be addressed.
Published: 1 August 2011
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This paper is concerned with determination of optimal lot size for an economic production quantity model with scrap and random breakdown occurring in backorder replenishing period. In most real-life manufacturing systems, generation of defective items and random breakdown of production equipment are inevitable. To deal with the stochastic machine failures, production planners practically calculate the mean time between failures (MTBF) and establish the robust plan accordingly, in terms of optimal lot size that minimizes total production-inventory costs for such an unreliable system. Random scrap rate is considered in this study, and breakdown is assumed to occur in the backorder filling period. Mathematical modeling and analysis is used and the renewal reward theorem is employed to cope with the variable cycle length. An optimal manufacturing lot size that minimizes the long-run average costs for such an imperfect system is derived. Numerical example is provided to demonstrate its practical usages.
Keywords: Production; Lot size; Machine breakdown; Backordering; Scrap Production; Lot size; Machine breakdown; Backordering; Scrap
This is an open access article distributed under the Creative Commons Attribution License (CC BY 3.0).

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Ting, C.-K.; Chiu, Y.-S.P.; Chan, C.-C.H. Optimal Lot Sizing with Scrap and Random Breakdown Occurring in Backorder Replenishing Period. Math. Comput. Appl. 2011, 16, 329-339.

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