A revised cost-benefit algorithm for solving the expediting completion time of end product problem with defective materials in the product structure diagram

Abstract

This paper proposes a revised cost-benefit algorithm for solving the expediting completion time of end product (ECTEP) problem with defective components/materials in the product structure diagram. The existing cost-benefit ECTEP algorithm assumes that all materials produced or purchased are of perfect quality. However, the procurement of defective materials in a real-life situation is inevitable. This study extends the algorithm to take imperfect-quality component parts into consideration. Adjusted unit procurement cost and adjusted required quantity are incorporated to address the issue of defective materials procured. Both random and stationary imperfect quality rates are examined. The critical path method and time-costing method are utilized in the proposed solution procedures for finding the optimal material procurement alternatives that minimize the end product unit manufacturing cost (including compensatory cost for defective materials) as well as expediting its total completion time. A numerical example is provided to demonstrate its practical usage.