A Multi-product EPQ Model for Defective Production and Inspection with Single Machine, and Operational Constraints: Stochastic Programming Approach

In the current study, a mixed-integer nonlinear programming model is presented for the development of an economic production quantity (EPQ) model that encompasses warehouse space and budget constraints while it does not consider shortage. To improve the simulation of reality, the model consists of haphazard factors with differing scenarios. The proposed model aims at maximizing the revenue by the calculation of the optimal level of production of every item in individual scenarios. Moreover, we concentrated on inspection, various inspection errors, defective items and their costs. The defective items are categorized regarding to the action taken on them. All related costs are also considered in the model. The model is solved using two metaheuristic algorithms, and the effectiveness of the approaches is demonstrated by generating various instances in a variety of dimensions. Finally, the results are calculated accurately by GAMS software to determine the deviation between the optimal solution and the output of the algorithms.