A delayed differentiation multiproduct model with the outsourcing of common parts, overtime strategy for end products, and quality reassurance

Abstract

Production planners today must simultaneously face with the time and quality demands of various goods externally and meet limited capacity internally. This study presents a two-stage delayed- differentiation multiproduct model that considers the outsourcing options for common parts, overtime strategy for end products, and quality reassurance to assist in making fabrication runtime decisions that are cost-effective. Stage one produces all necessary common intermediate components for end products. To reduce stage one’s utilization/uptime, this study adopts a partial outsourcing option. Stage two uses an overtime strategy to fabricate end products that further shorten the uptime. The production processes in both phases are assumed to be imperfect. This study employs the reworking/scrapping of random faulty items to reassure product quality. The researchers build a model to depict the proposed problem’s characteristics and used the mathematical modeling, analysis, and optimization approach to determine the best rotation cycle length that minimizes the system’s expenses. Further, in this study, the researchers provide sensitivity analyses and a numerical illustration, which validate the result’s applicability and exhibit its capability. This result contributes to practical multiproduct-fabrication by (1) deriving the optimal manufacturing policy for a delayed-differentiation multiproduct system with dual uptime reduction policies and quality reassurance; and (2) offering a decisional model that allows production planners to explore the collective/separate effect of a quality-ensured and dual uptime reduction strategy on a problem’s operating policy and crucial system performance indicators, which assists in cost-effective decision-making.

A bi-objective production planning for a flexible supply chain solved using NSGA-II and MOPSO

“…Similarly, Esmaeilikia, et al [3] introduced a tactical supply chain planning model with multiple flexibilities, defining flexibility adjustment in contemporary supply chain studies. Chiu, et al [4] proposed a production planning model in which they derived the optimal production policy for a delayed-differentiation multiproduct system with dual uptime reassuring quality. They also had crucial system performance indicators to help cost-effective decision-making.…”

“…In other words, conceptual models have been significantly constructed, while the need for integrated mathematical models, including flexibility dimensions, cannot be denied. In this respect, mathematical optimization models can considerably assist managers in deciding the supply chain flexibility [4].…”

Optimization of a hybrid multi-item fabricating-shipping integrated system considering scrap, adjustable-rate, and postponement

“…Finally, the researchers conducted theoretical and computational analyses to explore the postponement strategies and deterioration rate's influence on optimal policies. Other studies (Kisperska-Moron and Swierczek, 2011;Altug, 2016;Chiu et al, 2021Chiu et al, , 2022aLin et al, 2022;Kiani et al, 2022;Hinkka et al, 2023;Soto-Ferrari et al, 2023) investigated various postponement strategies' impact on operations, management, and controlling of multi-item fabrication in manufacturers and supply chains.…”

“…The following factors prefer outsourcing: a more significant market potential, higher clients' environmental awareness, and a longer distance between the outsourcer and producer. Other studies (Eiamkanchanalai and Banerjee, 1999;Osei-Bryson and Ngwenyama, 2006;Ameknassi et al, 2016;Chiu et al, 2021;Chiu et al, 2022b;Gambal et al, 2022;Megoze Pongha et al, 2022;Bernard and Mitraille, 2023;Karamemis et al, 2023) explored the effects of various contracting-out policies and expedited fabrication rates on manufacturing and supply-chain systems' uptime-reduction, optimization, control, and operations management. Lacking past works specifically optimizing the hybrid multi-item fabricating-shipping integrated system considering scrap, adjustable rate, and postponement, this work aims to fill the gap.…”