Alternative fabrication scheme to study effects of rework of nonconforming products and delayed differentiation on a multiproduct supply-chain system

Abstract

This study uses an alternative fabrication scheme to study the effect of rework of nonconforming items and delayed differentiation on a multiproduct supply-chain system. Traditional economic production quantity model focuses on a single-product inventory system where all products made are assumed to be perfect quality and finished products are issued continuously. To increase machine utilization, lower quality costs in production, and reflect the real-world vendor-buyer integrated systems Chiu et al. (2016a) [Chiu, Y-S.P., Kuo, J-S., Chiu, S. W., Hsieh, Y-T. (2016a). Effect of delayed differentiation on a multiproduct vendor-buyer integrated inventory system with rework. Advances in Production Engineering & Management, 11(4), 333-344.] employed a single-machine two-stage production scheme to study the effects of rework and delayed differentiation on a multi-product supply-chain system. With the intention of further reducing fabrication cycle time, this study considers an alternative two-machine two-stage fabrication scheme to re-explore the problem in Chiu et al. (2016a). Machine one solely produces all common parts for multiple end products. Then, machine two fabricates the customized multiproduct using a common cycle time strategy. Through the use of mathematical modeling and analyses, the optimal production cycle length and distribution policy are derived. Numerical examples are provided to demonstrate practical usage of the research results, and show its significant benefit in reducing fabrication cycle time compared to that obtained from prior studies that used different schemes.

Combining the delayed differentiation policy and common parts' partial outsourcing strategy into a multi-item FPR-based system

“…Kouvelis and Tian [15] proposed a three-stage decision process for deriving the optimal operating policy to meet uncertain aggregate demands but under the consideration of investing fl exible capacity and postponement options. Extra studies [16][17][18][19] investigated diverse impact of postponement strategies on business operations and multiproduct fabrication systems. To effectively shorten the common parts' fabrication time, the fl exible capacity policy such as the outsourcing strategy can help.…”

The Collective Influence of Component Commonality, Adjustable-Rate, Postponement, and Rework on Multi-Item Manufacturing Decision

“…Furthermore, the authors explored the correlations of service levels in varied fabrication stages and postponement point decisions and used a real case to show their framework's applicability. Other studies [4][5][6][7][8][9][10][11] explored the impact of diverse characteristics of delayed product differentiation on various multiproduct manufacturing systems, supply-chain management, and business planning and operations management.…”

Satisfying multiproduct demand with a FPR-based inventory system featuring expedited rate and scraps

“…Hence, a hybrid algorithm was developed by them to shorten time to locate the optimal solution. Other studies (Song, 1998;Absi & Kedad-Sidhoum, 2009;Ma et al, 2010;Taleizadeh et al, 2013;Chiu et al, 2016a,b;Fergany, 2016;Jawla & Singh, 2016;Razmi et al, 2016;Zahedi et al, 2016;Vujosevic et al, 2017;Chiu et al, 2018a) also focused on diverse subjects of multiproduct stock refilling systems.…”