Abstract
The paper considers a generalized economic manufacturing quantity (EMQ) model with stochastic machine breakdown and repair in which the time to machine failure, preventive and corrective repair times are assumed to be random variables. As the stress condition of the machine changes with the production rate, the failure rate is assumed to be dependent on the production rate. The goal is to derive the optimal production policy of the EMQ model treating the machine production rate (speed) as a decision variable. The proposed model is formulated under general failure and general repair time distributions. The optimal production policy and its dependence on the failure rate are investigated with numerical examples for specific failure and repair time distributions.
