Satisfying multiproduct demand with a FPR-based inventory system featuring expedited rate and scraps

Abstract

Facing stiff competition in worldwide markets, capability of meeting timely demands of multiproduct and satisfying customer’s desired product quality are essential to present-day manufacturers. Motivated by achieving the aforementioned goals, this research intends to find most economic common cycle length for a multiproduct finite production rate (FPR)-based inventory system, wherein, imperfect production process with expedited fabrication rate and random scrap is assumed. Extra setup and unit costs are associated with the adjusted rate, and imperfect products are screened and scrapped. A mathematical model is cautiously constructed to examine and resolve the problem. A numerical illustration is employed to exhibit the applicability of the proposed method. Except finding the most economic common cycle time for the problem, core contribution of this study also is associated with the individual and combined impact(s) of important factors to the problem, and hence, enabling management of manufacturing firms to make efficient/cost-effective decision and gain competitive advantages.

Keywords

• Multiproduct inventory system
• The most economic common cycle time
• Expedited fabrication rate
• Finite production rate
• Random scrap