Cost-Effective Imperfect Production-Inventory System under Variable Production Rate and Remanufacturing

Several industries are facing many challenges in their production systems due to increasing customer demand. Customer demand is growing for products with innovative features that are flexible, good quality, and appealing. This paper presents a flexible production-inventory system that produces multiple parts of a product. Defective products may be produced during the production process. Those defective products are remanufactured immediately after inspection. Limited budget and space constraints are considered, along with product assembly. Based on different distribution functions, non-linear equations are calculated using the Kuhn-Tucker optimization technique. Numerical examples, a graphical representation, and sensitivity analysis are presented in this paper. The solution procedure evaluates the minimization of the total investment based on the ?2 distribution. This study examines electronic products those are more likely to be defective rather than perfect during production.