Production inventory model for uniform demand considering recycle of defective items

Abstract

In this paper, a deterministic production inventory model is developed considering recycle of defective items usable for the production of same product in the next cycle when demand is uniform throughout the cycle time. Due to process deterioration or other factors, generation of defective items with finished goods is inevitable in almost every production process. Raw material from these defective items can be recovered and reused for the same product after being recycled. Proposed model describe how recycle of defective items reduces the procurement of raw material in order to minimize the total cost of the inventory system. Results are explained numerically and sensitivity of the model parameters is also carried out to justify the effectiveness by Mathematica 9.0.