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Economic production quantity model with a shifting production rate
Authors:Mohamed Ben-Daya  Moncer Hariga  Syed Naveed Khursheed
Affiliation:Department of Systems Engineering, King Fahd University of Petroleum &Minerals, Dhahran 31261, Saudi Arabia
E-mail:;
Engineering Systems Management Program, College of Engineering, American University of Sharjah, PO Box 26666, Sharjah, United Arab Emirates
Abstract:Typical models for determining the economic production quantity (EPQ) assume perfect product quality and perfect production processes. Deteriorating processes may affect production systems in several ways. They may decrease the quality of the items produced, cause production stoppage and breakdowns and/or reduce the production rate due to production process inefficiency. The purpose of this paper is to present an EPQ model that incorporates the effect of shifts in production rate on lot sizing decisions due to speed losses. The cycle starts with a certain production rate and after a random time, the production rate shifts to a lower value. A mathematical model to determine the optimal production policy under these conditions is developed and analyzed. Numerical examples are presented for illustrative purposes.
Keywords:production  inventory  deteriorating process  variable production rate
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