Journal of Korean Society of Industrial and Systems Engineering (산업경영시스템학회지)

Society of Korea Industrial and System Engineering (한국산업경영시스템학회)
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A Study of Inventory Models for Imperfect Manufacturing Setup Considering Work-in-Process Inventory

재공품 재고를 고려한 제조 시스템에서의 재고 관리 모델 연구

  • Ullah, Misbah (Department of Industrial and Management Engineering, ERICA Campus, Hanyang University) ;
  • Kang, Chang W. (Department of Industrial and Management Engineering, ERICA Campus, Hanyang University) ;
  • Qureshi, Shehereyar Mohsin (Department of Industrial and Management Engineering, ERICA Campus, Hanyang University)
  • Received : 2014.11.10
  • Accepted : 2014.12.06
  • Published : 2014.12.31
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Abstract

Optimum lot size calculation for real world manufacturing environment has been focused since last few decades. Several extensions have been made to the basic economic order and production order quantity models to realize the possible practical situations in industry. However, focus on work-in-process inventory has been ignored relatively. This paper provides a comprehensive review of the models developed for group technology based manufacturing environment focusing on work-in-process inventory. Models have been extended from a perfect manufacturing conditions to an imperfect manufacturing situation considering rework, rejection and inspection. Optimum lot size has been evaluated using a simple algebraic optimization approach. Significant parameters are highlighted using sensitivity analysis for the developed models. Numerical example is used to illustrate the utilization of such models in day-to-day production setups and the impact of significant factors' variation on total cost and optimum lot size.

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References

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