A mathematical model and optimization of total production cost and quality for a deteriorating production process

Abstract

Proper production planning can considerably improve a producer's competitiveness in delivering low-cost products with high quality and short-cycle time. In a deterioration process the quality may change during a production run leading to early product failures. To mitigate the impact of deterioration such as process shifting the optimal resetting cycle before the next setup must be determined as well as the initial settings at the beginning of a production run. The aim of this study is to propose a mathematical model that consists of a new quality loss function and adds maintenance costs to the ordering and inventory holding costs commonly considered in the classical model. The model is applied to a real-world case study to demonstrate the effect of initial settings of the mean quality characteristic. The results demonstrate the superiority of the proposed approach in terms of total production cost as compared with the economic production quantity model.