Economic manufacturing quantity model with machine breakdown and deteriorating production process

In this study, the author proposes a jointly setting model for determining the process mean and economic manufacturing quantity (EMQ) under the machine breakdown and deteriorating production process. The system addresses the corrective maintenance, preventive maintenance, and allowable shortage. The quality loss of conforming product is considered and Taguchi's asymmetric quadratic quality loss function is used for evaluating the product quality. The optimal process mean and economic manufacturing quantity are jointly determined by minimizing the total expected cost of product per unit time including the set-up cost, holding cost, corrective maintenance cost, preventive maintenance cost, shortage cost. A solution procedure is devised to obtain the optimal solution and the sensitivity analysis of key parameters is conducted to investigate the effect on the optimal solution. (paper)