Investment for process quality improvement and setup cost reduction in an imperfect production process with warranty policy and shortages

¹ Department of Mathematics & Statistics, Banasthali Vidyapith, 304022 Banasthali, Rajasthan, India
² Department of Applied Mathematics with Oceanology and Computer Programming, Vidyasagar University, 721102 Midnapore, India
³ Department of Mathematics, Kazi Naazrul University, 713340 Asansol, India
⁴ Department of Industrial Engineering, Yonsei University, 50 Yonsei-ro, Sinchon-dong, Seodaemun-gu, Seoul 03722, South Korea
⁵ Department of Industrial and Systems Engineering, Chung Yuan Christian University, 32023 Chung Li, Taiwan, ROC
⁶ Department of Mathematics, Jadavpur University, 700032 Kolkata India

^* Corresponding author: bsbiswajitsarkar@gmail.com

Received: 17 March 2018
Accepted: 10 November 2018

Abstract

Cost reduction for setup and improvement of processes quality are the main target of this research along with free minimal repair warranty for an imperfect production System. This paper deals with the effect of setup cost reduction and process quality improvement on the optimal production cycle time for an imperfect production process with free product minimal repair warranty. Here the production system is subject to a random breakdown from an controlled system to an out-of-control state. Shortages are fully backlogged. The main target to minimize the total cost by simultaneously optimizing the production run time, setup cost, and process quality. A solution algorithm with some numerical experiments are provided such as the proposed model can illustrate briefly. Sensitivity analysis section is decorated for the optimal solution of the model with respect to major cost parameters of the system are carried out, and the implications of the analysis are discussed.