abstract
- © 2021, The Author(s) under exclusive licence to The Royal Academy of Sciences, Madrid.The economic production quantity (EPQ) is one of the most commonly used models for production planning and inventory control problems. In this paper, a multi-product single- machine EPQ inventory model with imperfect production is extended under production capacity. In this system, produced items do not have perfect quality; they either are reworked or are scrapped. Moreover, the limited warehouse space for each item and the limited total available capital lead to constraints for storage and budget, respectively. Besides, the setup cost/time for each product depends on the quantity produced. The objective function of the developed EPQ inventory model is shown to be a convex non-linear programming problem (CNLPP) for all ranges of the setup cost function. Hence, a heuristic algorithm is proposed to solve it. A numerical example is solved in order to demonstrate the use of the proposed inventory model.