Optimizing integrated manufacturing and products inspection policy for deteriorating manufacturing system with imperfect inspection

• A manufacturing system with process deterioration and imperfect inspection is studied.
• Both in-control and out-of-control states are investigated.
• Elapsed time of the system in the in-control state is a random variable.
• Defective and reworkable items are assumed.
• Joint optimization of manufacturing period length and inspection policy is investigated.

In this paper, we study an inventory-production system with process deterioration and imperfect inspection. Both in-control and out-of-control states are investigated and a mathematical model for deteriorating process representing the expected total cost is derived to obtain the optimal solutions. The aim of this research is to determine the optimal production period length and inspection policy, such that the expected total cost is minimized. In order to solve the proposed model, some useful properties are obtained and the convexity of objective function is proved. Numerical examples and sensitivity analysis are provided to illustrate the applicability of the proposed model and solution method.