Lot sizing with non-zero setup times for rework

In this paper we consider a single machine multi-product lot scheduling problem in which defective items are produced in any production run of each product. In each cycle after the normal production of each product the machine is setup for the rework of the defectives of the same product and then the rework process starts. We assume that the setup time for the normal production process as well as the rework process is non-zero. This paper has two objectives. The first objective is to obtain the economic batch quantity (EBQ) for a single product. The second objective is to extend the result of the first objective to the multi-product case. Adopting the common cycle scheduling policy we obtain optimal batch sizes for each product such that the total cost of the system per unit time is minimized.