The study examines the combined effect of rework, multiple shipments, postponement, and overtime producing common-component on a multiproduct vendor-client incorporated system. Clients’ product demand trend turns to diversity, quality, and rapid response in the current supply-chain environment. Under such a stiff competitive environment, today’s manufacturers must effectively plan their multi-item fabrication to boost utilization and product quality, minimize total relevant costs, and meet short given order lead time. By considering the commonality of the finished goods, required quality, and completion lead time, this study presents an exact model featuring rework of defects, multiple shipments, postponement, overtime producing the mutual component, and satisfying the market needs. Through the techniques of explicitly modeling, formulating, and system cost minimization, this study simultaneously derives the optimal cycle-time and shipping frequency for the studied problem. A numerical example helps show how our model works for any given parameter values and how the variation in single and multiple factors of the problem affects the crucial system performances (e.g., total uptimes, each relevant cost, utilization, total cost, etc.) A wide variety of today’s industries (e.g., automotive, household goods, etc.) and their related supply chains can utilize our decisional model to reveal in-depth managerial insights for planning their fabrication and shipments.

The present study explores the collective influence of component commonality, adjustable-rate, postponement, and rework on the multi-item manufacturing decision. In contemporary markets, customer demand trends point to fast-response, high-quality, and diversified merchandise. Hence, to meet customer expectations, modern manufacturers must plan their multiproduct fabrication schedule in the most efficient and cost-saving way, especially when product commonality exists in a series of end products. To respond to the above viewpoints, we propose a two-stage multiproduct manufacturing scheme, featuring an adjustable fabrication rate in stage one for all needed common parts, and manufacturing diversified finished goods in stage two. The rework processes are used in both stages to repair the inevitable, nonconforming items and ensure the desired product quality. We derive the cost-minimized rotation cycle decision through modeling, formulation, cost analysis, and differential calculus. Using a numerical illustration, we reveal the collective and individual influence of adjustable-rate, rework, and postponement strategies on diverse critical system performances (such as uptime of the common part and/or end products, utilization, individual cost factor, and total system cost). Our decision-support model offers in-depth managerial insights for manufacturing and operations planning in a wide variety of contemporary industries, such as household merchandise, clothing, and automotive.