Quality control with autonomation for market segmentation in a service-based smart complex production system

In real-world situations, the human-based inspection process often involves errors in detecting defective products, affecting the quality of products. When the production system enters an out-of-control state in a long-run process, it produces faulty products at a random rate. Based on this, the model introduces an autonomation inspection technology in an imperfect smart complex production system to separate faulty items using a machine-based inspection strategy. The manufacturer reworks the separated faulty items to control their quality. The manufacturer sells new quality and reworked quality products at variable prices and offers service for sold products. The model introduces variable demand and formulates it mathematically by incorporating space and budget constraints. The formulated nonlinear function is solved using the Karush-Kuhn-Tucker method. A numerical example and sensitivity analysis are provided to illustrate the model. Results show that autonomous inspection, quality, and service improve the profit of the proposed model.