Impact of dual uptime-reducing strategies, postponement, multi-delivery, and rework on a multiproduct fabrication-shipping problem

Abstract

This study examines the joint impact of outsourcing, overtime, multi-delivery, rework, and postponement on a multiproduct fabrication problem. A growing/clear trend in today’s customer requirements turned into rapid response and desired quality of multi-merchandises and multiple fixed-amount deliveries in equal-interval time. To satisfy customers’ expectations, current manufacturing firms must effectively design/plan their multiproduct production scheme with minimum fabrication-inventory-shipping expenses and under confined capacity. Motivated by assisting manufacturing firms in making the right production decision, this study develops a decision-support delayed-differentiation model considering multi-shipment, rework, and dual uptime-reducing strategies (namely, overtime and outsourcing). Our delayed-differentiation model comprises stage one, which makes all common/standard parts of multi-end-merchandises, and stage two, which produces multiple end merchandise. For cutting making times, the study proposes subcontracting a portion of the common/standard part’s lot size and adopting overtime-making end merchandise in stage two. The screening and reworking tasks identify and repair faulty items to ensure customers’ desired quality. The finished lots of end merchandise are divided into a few equal-amount shipments and distributed to customers in equal-interval time. We employ mathematical derivation and optimization methodology to derive the annual expected fabrication- inventory-shipping expense and the cost-minimized production-shipping policy. A numerical demonstration is presented to exhibit our research scheme’s applicability and exposes the studied problem’s critical managerial insights, which help the management make beneficial decisions.

An operating cost minimization model for buyer-vendor coordination batch system with breakdowns, scrap, overtime, and an external source

“…Lastly, they employed the utility interval method and provided sensitivity analyses to assess their results and measure their approaches' robustness with a real partner selection case from the Iranian factory. Other studies (Golden and Wiens-Tuers, 2008;Assid et al, 2015;Chiu et al, 2020;Chiu et al, 2021;Cornelius et al, 2021;Chiu et al, 2022;Porto et al, 2022;Chiu et al, 2023;Shekar and Nataraj 2023) discovered the effect of different subcontracting and overtime/output-increasing strategies on reducing batch runtime of modern manufacturing firms' operations and management.…”