Developing approximate algorithms for EPQ problem with process compressibility and random error in production/inspection

This paper formulates a new imperfect production problem that generates defectives randomly. The production manager conducts total inspections to screen defectives (including reworkable and non-reworkable items) from non-defectives. But, the inspection is error-prone due to different sources. The model determines rates of main and rework processes, batch size and backlog. As the model is a nonlinear programme and it is difficult to obtain an algebraic closed-form solution, three randomised approximation algorithms are developed. Under certain conditions, the algorithms can find the global optimum in polynomial time. Finally numerical analyses are reported.