Optimization of the finite production rate model with scrap, rework and stochastic machine breakdown

This study employs mathematical modeling along with a recursive searching algorithm to determine the optimal run time for an imperfect finite production rate model with scrap, rework, and stochastic machine breakdown. In real-life manufacturing systems, generation of defective items and machine breakdown are inevitable. The objective of this paper is to address these issues and to be able to derive the optimal production run time. It is assumed that the proposed manufacturing system produces defective items randomly, a portion of them is considered to be scrap, and the other portion can be repaired through rework. Further, the proposed system is subject to random breakdown and when it occurs, the abort/resume (AR) policy is adopted. Under such an inventory control policy, the production of the interrupted lot will be resumed immediately when machine is fixed and restored. Mathematical modeling along with a recursive searching algorithm is used for deriving the replenishment policy for such a realistic production system.