Lot-sizing for a single-stage single-product production system with rework of perishable production defectives (Q1871762)

In this paper the authors have solved the lot sizing problem in an imperfect production system in which deteriorate units may be reworked. They have extended the notion of perishability to the case of technological obsolescence of the product. Both time and cost of rework are assumed to increase linearly with respect to the time for which the defective unit (either for perishability or obsolescence) is waiting to be reworked. Moreover, defective units are supposed to be reworked following the last come first served rule. On the basis of these assumptions the production/rework sequence has been illustrated and an explicit expression for the expected profit has been calculated involving the probability values, the costs, the revenues, and the time intervals of the production/rework process and as function of the production batch size. By using the profit expression, the authors have determined the optimal batch size for a specific example and carried out a sensitivity analysis for some of the problem's parameters. The paper has been concluded by a brief comparison with the work of \textit{J. J. Liu} and \textit{P. Yang} [Eur. J. Oper. Res. 91, 517--527 (1996; Zbl 0924.90085)] which is closely related to the author's work.