Effect of inspection errors and preventive maintenance on a two-stage production inventory system

The effect of imperfect production processes on lot-sizing decisions has received a lot of attention in the literature. These efforts have mostly been confined to single-stage production systems. The issue of imperfect production processes has not been adequately addressed in the context of multistage production/inventory systems. In this paper, we propose a production inventory model that takes into account the effect of imperfect production processes, preventive maintenance and inspection errors. Numerical examples are presented for illustrative purposes. (c) 2006 Published by Elsevier B.V.