An integrated production inventory model of deteriorating items subject to random machine breakdown with a stochastic repair time | |
| Author | Karim, Rubayet |
| Subject(s) | Stochastic analysis Inventory control |
| Note | A thesis submitted in partial fulfillment of the requirements for the degree of Master of Engineering in Industrial and Manufacturing Engineering, School of Engineering and Technology |
| Publisher | Asian Institute of Technology |
| Abstract | In a continuous manufacturing environment where production & consumption occur simultaneously, one of the biggest challenges is the efficient management of production & inventory system. In order to manage the integrated continuous production inventory system economically it is necessary to identify the optimal production time & optimal production reorder point that maximize the profit or minimize the cost. In addition, at the time of production the product has to go through some natural phenomena like random breakdown of machine, deterioration of product over the time, uncertainty in repair time that eventually create possibility of shortage. In this situation, efficient management of inventory & production is crucial. This thesis addresses the situation where a perishable (deteriorated) product is manufactured & consumed simultaneously, demand of this product is stable over the time, machine that produce the product also face random failure & time to repair this machine is also uncertain. In order to describe this scenario more appropriately, Economic Production Quantity (EPQ) model with continuous review system is considered in this thesis work .Moreover, this stochastic nature of manufacturing environment is framed by considering some assumptions. Demand & production rate is fixed. The time to breakdown of machine is assumed to follow exponential distribution, repair time is stochastic & also assumed to follow exponential distribution. The deterioration of products is assumed to follow exponential distribution with a fixed deterioration rate. The main goal is to identify the optimal production uptime & production reorder point that ultimately minimizes the expected value of total cost consisting of machine setup, deterioration, inventory holding, shortage & corrective maintenance costs. In this connection a model is developed & a near optimal production uptime & production reorder point are derived under situations of continuous review, shortage and stable demand. Finally an extensive sensitivity analysis is carried out to investigate the behavior of the optimization model. |
| Year | 2014 |
| Type | Thesis |
| School | School of Engineering and Technology (SET) |
| Department | Department of Industrial Systems Engineering (DISE) |
| Academic Program/FoS | Industrial Systems Engineering (ISE) |
| Chairperson(s) | Huynh, Trung Luong; |
| Examination Committee(s) | Pisut Koomsap;Bohez, Erik L.J.; |
| Scholarship Donor(s) | Asian Development Bank;Japan Scholarship Program; |