#TITLE_ALTERNATIVE#

• Main Author: MISRIANTY (NIM 23402054), SITI
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/11418
• Institution: Institut Teknologi Bandung

This research deals with an EMQ model that considers an improvement of production process. The production process improvement is achieved through investment in production technology. The aim to improve the process is to increase the probability that the process is in the control state after producing a product. This improvement requires investment cost in the one side, and reduces the deterioration' and warranty cost, in the other side. Since this study is from the producer point of view, the total cost, which is the sum of manufacturing cost, investment cost, and warranty cost, is a relevant performance indicator used in this study. The decision variables of the model are an addtional probability that the process is in the control state (8) and the lot size (Q). The analytical approach is used to prove the optimal solution, which minimizes the total cost, exists and it is unique. An heuristic algorithm is used to find values of decision variables and numerical examples are given to describe the solution properties. From the results of numerical examples results, it can be concluded that the investment in technology can prolong the probability of the in-control state and this in turn will reduce the restoration and warranty costs.