Sustainable Economic Production Quantity Model with Rework and Product Return Policy.

This paper develops an Economic Production Quantity (EPQ) model for imperfect items by considering the rework and remanufacturing process, also generation of carbon emissions. In this model development, defective products may come from the results of regular production process and imperfect quality products returned by customers. Defective products which turned back by customers may occurs due to mistakes made by inspector during the screening process, these mistakes include classifying items that are defective as perfect quality items or incorrectly classifying non-defective items as damaged items. The defective product will be reworked at the end of the production cycle. The proposed model also considers carbon emissions emitted during the overall production cycle. This carbon emissions refer to the amount of energy consumed during the production process until the produced items are stored in the warehouse. The results obtained from the mathematical model can be used to determine the optimal number of production setup in one production cycle and the optimal regular production period length to achieve minimum total inventory related cost per unit time. [ABSTRACT FROM AUTHOR]