A mathematical model for the economic justification of setup time reduction

Trevino, Jaime; Hurley, Bill; Friedrich, Werner

doi:10.1080/00207549308956720

Cited by 38 publications

(20 citation statements)

References 5 publications

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“…For the full benefits of JIT to be realized, JIT deliveries should be matched with JIT production rather than producers stockpiling inventory to meet their customers' JIT delivery requirements. The main thesis behind having suppliers become JIT producers is that inventory hides problems and, by reducing inventory, quality problems are discovered and solved (Trevino et al 1993, Cordon 1995. Given the above arguments asserting the negative relationship between inventory and quality, it is essential that supply chain inventory models incorporate this relationship.…”

Section: Introductionmentioning

confidence: 98%

The impact of quality considerations on material flow in two-stage inventory systems

Khouja¹

2003

International Journal of Production Research

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Supply chain management literature calls for coordination between the different members of the chain. Inventory models achieve this coordination along a supply chain by making the lot size at an upstream entity an integer multiplier of the lot size at the adjacent downstream entity. Such models assume that all components produced are of acceptable quality and may cause suppliers to produce larger quantities than what is optimal. In this paper, we formulate and solve two-stage supply chain inventory models in which the proportion of defective products increases with increased production lot sizes. We show that quality considerations can lead to significant reduction in production lot sizes. In addition, the models show that most benefits to the supply chain are attained from the suppliers producing on a just-in-time basis rather than delivering to their customers justin-time. We derive closed-form expressions for the optimal lot sizes for a twostage supply chain under deterministic and then stochastic demand and illustrate the models with numerical examples.

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Section: Introductionmentioning

confidence: 98%

The impact of quality considerations on material flow in two-stage inventory systems

Khouja¹

2003

International Journal of Production Research

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“…A number of points related to set-up reduction have been studied; for example, prioritization of set-up reduction among machines using the theory of constraints (Chakravorty and Sessun 1995), development of knowledge-based decision support systems for set-up reduction (Kim and Arinze 1992), economic justification of set-up reduction (Trevino et al 1993), and set-up reduction scheduling (Feng et al 1997). This paper is concerned with the last point.…”

Section: Introductionmentioning

confidence: 99%

A mixed integer linear programming model for set-up reduction superstructures

Gasparini

Qassim

2003

International Journal of Production Research

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The objective of this research is to introduce the concept of a set-up reduction superstructure and evaluate its utility in set-up reduction projects. For a given setup project, consisting of several interdependent activities as well as existing ones, a superstructure is defined. For this superstructure, a corresponding mixed integer linear programming model is developed with a view to selecting the optimum setup project. The resulting model is applied to the set-up reduction problem in a real example of the fabrication in a CNC lathe of a vibration reduction pulley for lorry motors. The model is implemented in the Mathematica platform. It is shown that the set-up reduction superstructure is a useful concept in practice.

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“…The typical tasks in the set-up operation include the exchange of jig/ xtures, exchanging of moulds and dies, inspection, prototype production, and adjustment. Thus set-up time can be de ned as the period of time from the last good part of the previous set-up to the rst acceptable part after the new set-up (Trevino et al 1993). In addition, the machine idle time resulted from the waiting time for the material handling device to pick up the part is also included in the set-up time.…”

Section: Introductionmentioning

confidence: 99%

“…Furthermore, larger lot sizes make the production system in exible and ineµ cient (Black 1991). Porteus (1985Porteus ( , 1986 and Trevino et al (1993) have also pointed out that smaller lot sizes can be economically achieved by reducing set-up time. At the same time inventory cost and material handling costs are reduced.…”

Section: Introductionmentioning

confidence: 99%

Investment in set-up time reduction with time-varying demand

Wang¹,

Chen

2001

Production Planning & Control

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In this paper, a mathematical model is developed to investigate the economic e ¶ ects of set-up time reduction. In this model, the concept of product life cycle and continuous demand are included, with the objective of minimizing the total relative cost while demand is variable over time. Also, budget constraints are added to describe the conditions of limited investment. Following the suggested procedure of deciding investment in set-up time reduction, a manager can conclude if set-up time reduction is economically feasible and allocate the investment optimally. Finally, an example about the declining market demand is provided to demonstrate the application of the model. NomenclatureThe following is a list of notations used throughout this paper. The numerical value which follows a variable is used for calculations in section 4. A the storage space per pallet (ˆ1:2 m 2 /pallet) c a cost per square meter of storage per year (ˆUS$ 3 000 per square metre per year) c f pallet usage cost per pallet per year (ˆUS$ 200/pallet/year) c r rework cost per part (ˆUS$ 5/part) c s scrap cost per part (ˆUS$ 9/part) D…t † demand rate, D…t † 0 H inventory carrying cost for each part per year (ˆUS$ 0.9/part/year) ICC inventory carrying cost

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A mathematical model for the economic justification of setup time reduction

Cited by 38 publications

References 5 publications

The impact of quality considerations on material flow in two-stage inventory systems

The impact of quality considerations on material flow in two-stage inventory systems

A mixed integer linear programming model for set-up reduction superstructures

Investment in set-up time reduction with time-varying demand

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