Production inventory model with disruption and reliability considerations

Publication Type:
Conference Proceeding
Proceedings of International Conference on Computers and Industrial Engineering, CIE, 2013, 1 pp. 291 - 304
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In this paper, a single stage batch production-inventory system is introduced. For it, the production can face either a sudden or multiple disruptions, for a certain period of time. The model also considers production process reliability because production environment are often imperfect. The problem is formulated as a non-linear constrained optimization problem that considers production capacity, demand, delivery and transportation constraints while attempting to maximize the total profit in the disruption recovery window. The model is also applied to solve production systems with single or multiple disruptions. The production quantity in each cycle in the recovery window is revised after every disruption, for as long as disruptions take place in the system, while considering the effect of all dependent disruptions. The model is solved by using both a pattern search and a genetic algorithm based solution approach. The results are also compared. Both a numerical example and a sensitivity analysis are presented to explain the model.
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