The production-inventory model with imperfect, rework, and scrap items under stochastic demand

Abstract

Inventory is crucial in maintaining a smooth production process and meeting consumer demand for manufacturing companies. This research focuses on production problems involving defects, rework, and scrap items in stochastic demand. This research aims to develop a production-availability model by minimizing the expectation of total cost (ETC). The model includes four main decision variables, namely production quantity (Q), safety factor (k), production rate (P), and rework rate (P1). This research uses the Aquila optimizer algorithm to optimize the objective function. It compares with the heuristic procedure and Harris Hawk optimization algorithm. The results showed that the Aquila optimizer algorithm successfully optimized the production-availability problem. A comparison between algorithms indicates that the Aquila optimizer algorithm performs equivalently to the Harris Hawk optimization algorithm and outperforms the heuristic procedure. Sensitivity analysis shows that increasing demand uncertainty increases ETC and k. At the same time, it can decrease Q.