“…The statistics of flows due to rework, scrapping and replacement of defective items, as well as their impact on the processing times and inventory were first studied in Seidman and Nof (1985) and Tapiero and Hsu (1987) for single-stage production systems. Since then, the operational analysis of production systems with several machines and rework loops has received considerable attention (see, e.g., Wittrock 1992, Kim et al 1995, Crowley et al 1995, Narahari and Khan 1996, Lee et al 1999, Li 2004, Ioannidis et al 2004, and Pradhan and Damodaran 2008.…”