Analysis of a Markov Chain Model of a Multistage Manufacturing System with Inspection, Rejection, and Rework by Kei-Yun (Calvin) Yu and Dennis L. Bricker Department of Industrial and Management Engineering The University of Iowa Iowa City, Iowa January 1990 _________________________________________________________ Abstract : Absorption analysis is applied to a Markov chain model of a multistage manufacturing process with inspection and reworking. _________________________________________________________ Introduction The analysis of Markov chains is a basic topic in an introductory course in operations research (OR). Most textbooks on the subject include a section on absorption analysis. The typical examples used to illustrate absorption analysis include accounts receivables and workforce planning. However, J. E. Shamblin and G. T. Stevens, Jr., in their OR textbook [2], present an example of absorption analysis applied to a problem in manufacturing, which is perhaps more appropriate for industrial engineering students. This example was in turn borrowed by J. W. Foster, D. T. Phillips, and T. R. Rogers for their book on reliability, availability, and maintainability of production systems [1]. The analysis in both sources, unfortunately, is in error. Below, we present a more detailed analysis of the example, with the previous error corrected. 3/4/97 1