Integrating quality and maintenance decisions in a production-inventory model for deteriorating items

Abstract

In typical production-inventory models of deteriorating items, deterioration of the production process has not been considered. In this paper, a model is proposed in which both the produced items and the production equipment deteriorate. When the production system deteriorates, it shifts to an out-of-control state and begins to produce a proportion of defective items, necessitating corrective maintenance action. A model is formulated to integrate several realistic aspects, including item and process deterioration, varying demand and production rates, quality, inspection, and maintenance. A heuristic solution algorithm is developed to determine the production and inspection schedules, and a numerical example is solved.

Acknowledgments

The authors are grateful to King Fahd University of Petroleum and Minerals for supporting this research effort. They also thank two anonymous referees for constructive comments and suggestions.