Production and Warranty Optimal Period in Deteriorating Production Systems by Considering Inspection of both Manufacturing Equipment and Products Simultaneously

Abstract

Traditionally high share of production-distribution costs to inventory and supply policy dedicated. The production model of politics is important for a system of distribution, taking into account the actual conditions of production and optimal production parameters influenced. One of these conditions is that the production equipment during production turned out of control and produce defective products. It is possible to change the mode in real terms, and then significantly increase the amount of defective products. Despite these conditions, one of the parameters affecting the demand for products and sales, and consequently the amount of corporate profits is the product warranty. The after-sales service product parameter influencing the willingness of consumers to buy the product. In this work, it consider the potential failure of production equipment, as well as the product warranty, mathematical models of inventory control policy, based on actual production conditions for the production units. This model is aimed at achieving the optimal length of time in each period and for optimum product warranty with respect to maximizing profits per unit of time. In other words, the goal is create an optimal balance between product sales revenue and costs incurred during the period of warranty for the product. In fact, in this article will discuss this model and its resolution.