Optimal Production and Quality Policy Consider Rework and Carbon Emission  
Author Pei-Hsuan Hsu

 

Co-Author(s) Yu-Chung Tsao; Tsung-Hui Chen

 

Abstract This study investigates how manufacturers can optimize production costs, enhance product quality, and reduce carbon emissions through quality investment. We develop an Economic Production Quantity model incorporating quality investment, remanufacturing, and carbon emission costs to analyze how these factors influence overall production costs. Defective products are inevitable in manufacturing, but reworking them instead of scrapping them helps minimize resource waste and reduce environmental impact. While quality investment increases initial production costs, it reduces defect rates, thereby decreasing rework demand and carbon emissions. This study developed mathematical modeling that considers a supply chain system comprising suppliers, manufacturers, and consumers. Analyze the effects of production, defect, and rework rates on total costs. This paper's findings indicate that as quality investment increases, carbon emission costs exhibit an exponential decline while defect rates and rework requirements also decrease. Furthermore, numerical analysis reveals that a higher production rate helps allocate fixed costs more effectively, lowering per-unit production costs and improving operational efficiency. This study provides a viable approach to balancing production costs, quality control, and carbon emission management, enabling firms to achieve economic and environmental goals amid increasingly stringent regulations.

 

Keywords Quality, rework, carbon emission, production, inventory
   
    Article #:  RQD2025-262
 

Proceedings of 30th ISSAT International Conference on Reliability & Quality in Design
August 6-8, 2025