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In a production system, it is necessary to apply quality control methods to prevent the nonconforming products from reaching the customers. Appropriate inspection is a significant component of production systems. Determination of appropriate inspection allocations becomes an interesting research topic. In this research, we formulate a general inspection problem, both for a serial and a nonserial manufacturing system. Serial production systems may be viewed as a special case of nonserial production systems. We extended the treatment of the inspection allocation problem to address the following conditions: (1) the order of production operations does not have to be known in advance (2) there are several inspection facilities available to each inspection point. Traditionally, dynamic programming, 0-1 integer programming or non-linear programming techniques are used to solve inspection allocation problem. However, a problem using these techniques is that the computation time becomes prohibitively large when the number of potential inspection stations are twenty or more. In the current research, inspection allocation models are formulated with the objective of determining the number and location of inspection stations which will minimize the expected total cost per unit produced. The total cost includes fixed and variable processing cost, inspection cost, material handling cost, internal failure costs (repair, replacement, scrap, and rework) and external failure costs. In this research, we apply the simulated annealing algorithm to solve the inspection allocation problem. A comparison shows that the simulated annealing algorithm is a promising approach to solve inspection allocation problem.
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