This study mainly discusses the best economic production quantity (EPQ) system that can be obtained with the considerations of the possibility of causing defective item production in the uncertain environments. In the current production and manufacturing schedule, the efficiency of a company’s operations is often determined by the quality of the supply chain. However, the traditional method for solving the problem pertaining to economic production quantities usually assumes that the defective items and the backorder situations do not exist in the perfect production process. In this study, the system is developed on the basis of the production of the finished good inventory model. Defective products were separated by the system. Then, the nonrepairable defective products were destroyed, and the remaining items were repaired and re-sent to the buyer. Quantity discount was added to this study to represent the influence of the defective product rate on the manufacturing cost. To cooperate with the uncertain manufacturing procedure, fuzzy demand was incorporated into the study to obtain a more realistic and reliable result.

Included in

Business Commons