Optimal Replenishment and Rework with Multiple Unreliable Supply Sources

@article{Chen2001OptimalRA,
  title={Optimal Replenishment and Rework with Multiple Unreliable Supply Sources},
  author={Jinfa Chen and David D. Yao and Shaohui Zheng},
  journal={Operations Research},
  year={2001},
  volume={49},
  pages={430-443}
}
We study a production-inventory system with multiple unreliable supply sources. Through inspection and rework the system can improve the quality of the units received from the supply sources. There are two interleaved decisions: the replenishment quantities from the sources and the inspection-rework quantities among the units received. We show the optimal solution to the replenishment decision can be eeciently derived from a greedy algorithm, and inspection-rework is optimally applied to a… CONTINUE READING
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