Abstract

a b s t r a c t In this paper, a production quantity model with random defective items, service level constraints and repair failure is studied. The existence of only one machine results in limited production capacity and partial backordering. The aim of this research is to determine the optimal cycle length, optimal production quantity and optimal backordered quantity of each product such that the expected total cost (holding, shortage, production, setup, defective items and repair costs) is minimized. Two numerical examples and sensitivity analysis are provided to illustrate the practical usage of the proposed method.