Manufacturing Quantity Model for an Unreliable Production Systems

This paper discusses a problem of economic manufacturing quantity and sell pricing for an unreliable production systems. A profit model is formulated in which production uptime, production rate and sell pricing are treated as decision variables. Then, for given production rate and sell pricing, we show that the objective function is unimodal. Moreover, the upper bound and lower bound of production uptime are obtained, and the low bound is rather approximation to the optimal production uptime. Finally, numerical examples are given to illustrate the validity of the model, and the sensitivity of the optimal results with the parameters is also examined.