An economic production quantity model for deteriorating items with multiple production setups and rework

Rework is one of the main issues in reverse logistic and green supply chain, since it can reduce
production cost and environmental problem. Many researchers focus on developing rework model, but
few of them developed model for deteriorating items. In this paper, we develop an economic
production quantity (EPQ) model for deteriorating items with rework. In one cycle, production facility
can produce items in m production setups and one rework setup, (m, 1) policy. An example and
sensitivity analysis is shown to illustrate the model. The results show that the deteriorating rate affects
the optimal cost per unit time, but the effect is not significant. The parameters that significantly affect
the optimal total cost per unit time are the serviceable holding cost, the production setup cost and the
demand rate.