Optimal run time for EPQ model with scrap, rework and stochastic breakdowns: A note

- This paper intends to enhance practical usage of result given in Chiu et al. (2007).
- It incorporates an additional failure in rework factor into the proposed problem.
- The optimal replenishment run time for such an amending practical model is derived.
- Effect of failure in rework on optimal run time is investigated.

In a recent study [Chiu et al., 2007. Determining the optimal run time for EPQ model with scrap, rework, and stochastic breakdowns. European Journal of Operational Research 180, 664-676], the perfect rework of nonconforming items was assumed in a production system that is subject to stochastic breakdown and random defective rate. However, in most real-life manufacturing systems emphasizing on quality assurance, the perfect rework of nonconforming products may not always be possible as a result of various factors. Therefore, in order to enhance the practical usages of their research outcome, this paper incorporates failure in rework factor into Chiu et al.'s model, derives the optimal replenishment run time for the amended model, and investigates the effect of the failure in rework on the optimal operating policy through this exact model.