Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
1707294 | Applied Mathematical Modelling | 2007 | 8 Pages |
Abstract
This paper considers an economic production quantity (EPQ) model with imperfect production processes, in which the setup cost and process quality are functions of capital expenditure. The mathematical model is derived to investigate the effects of an imperfect production process on the optimal production cycle time when capital investment strategies in setup reduction and process quality improvement are adopted. An efficient procedure is developed to find the optimal production run length, setup cost and process quality. Finally, a numerical example is provided to illustrate the theoretical results. Some managerial implications are also included.
Related Topics
Physical Sciences and Engineering
Engineering
Computational Mechanics
Authors
Kuo-Lung Hou,