Joint effects of stochastic machine failure, backorder of permissible shortage, rework, and scrap on stock replenishing decision

Chiu, Yuan‐Shyi Peter; Chen, Yuru; Chiu, Victoria; Chiu, Singa Wang

doi:10.5267/j.ijiec.2018.6.005

Cited by 5 publications

(3 citation statements)

References 32 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…He provides an analytical solution by considering production run-time as a decision variable. Chiu et al (2019) study an unreliable production inventory system that takes into account product quality, machine reliability, and an adequate service level. Eventually, the authors determine the optimal policy of replenishment for the proposed model by incorporating the joint effects of random machine failure, back-order, rework, and scrap.…”

Section: Literature Reviewmentioning

confidence: 99%

A Markovian production-inventory system with consideration of random quality disruption

Karim

Nakade

2020

JAMDSM

View full text Add to dashboard Cite

In this paper, we develop a stochastic model for an imperfect production-inventory system that faces random quality disruption and has limited time for production. In each time planning horizon, the inventory level is affected by product quality disruption. When the production system switches to the 'out-of-control' state from the 'in-control' state, it starts producing some defective products along with defect-free products, and this switching time is stochastic. The process of the inventory levels at the start of the time horizon is expressed by using a finite and continuous state continuous-time Markov process. We construct mathematical expressions of the transition probability, the steady-state probability, and the long-run average cost. Through a numerical experiment, the near-optimal solution is achieved. The outcome shows that under the situation of production time constraint, the integration of safety stock in an interruption prone production-inventory system, assists in improving the average cost function. The results also show that the optimal safety stock is large when the defect percentage, or the production switching rate, or the shortage cost is very high. Conversely, the small safety stock is desirable when the inventory holding cost or the rework cost is high.

show abstract

Section: Literature Reviewmentioning

confidence: 99%

A Markovian production-inventory system with consideration of random quality disruption

Karim

Nakade

2020

JAMDSM

View full text Add to dashboard Cite

show abstract

“…Recently, Marchi et al [22] considered the learning effect and energy consumption in an EPQ with machine breakdown and defective items. Chiu et al [23] studied EPQ with stochastic machine failure and random defective rate while considering a minimum service level. Chiu et al [24] extended the model and considered a multi-shipment policy.…”

Section: Economic Production Quantity With Machine Unavailability Andmentioning

confidence: 99%

Production-Inventory System for Deteriorating Items with Machine Breakdown, Inspection, and Partial Backordering

et al. 2019

View full text Add to dashboard Cite

This study considers the effects of a machine breakdown, inspection, and partial backordering for deteriorating items. Most industries try to reduce facility unavailability by implementing a regular inspection and preventive maintenance since there is a possibility that some machines will breakdown during the production process. Moreover, an emergency purchase policy can be provided for quick response to customer’s backorder. The system also produces imperfect items with different rates before and after the inspection. Rework process and post-sales warranty are launched for the defective items. Unlike previous studies, we applied a fixed-point approach and renewal reward theorem to solve the deteriorating production-inventory model while considering machine breakdown, inspection, and partial backordering. A case example and sensitivity analysis are provided. The sensitivity analysis shows the important parameters that should be considered in designing the inspection plan and the replenishment policy when facility unavailability and imperfect items exist.

show abstract

“…A periodic inspection is implemented on the first component, and the authors proposed a model to seek the optimal inspection schedule that keeps the total cost at minimum. Chiu et al (2019a) explored the joint influences of backorder, random failures, scrap, and rework on the inventory replenishing decision. The authors first built a model to characterize the problem and then carried out formulations, analyses, and derivations of the model to attain the cost function.…”

Section: Introductionmentioning

confidence: 99%

A vendor-buyer coordinated system featuring an unreliable machine, scrap, outsourcing, and multiple shipments

Chiu¹,

Zhao²,

Chiu³

et al. 2020

10.5267/j.ijiec

Self Cite

View full text Add to dashboard Cite

Operating in today's highly competitive global markets, transnational enterprises always seek to optimize internal vendor-buyer coordinated systems to ensure timeliness and quality deliveries, given the reality of unreliable machines and limited capacity. To facilitate accurate decision making to help organizations gain competitive advantages in such situations, this study explores an intra-supply-chain problem featuring a partial outsourcing batch fabrication plan, random scrap, Poisson-distributed breakdown rate, and multiple shipments of end-product. First, we build a model to characterize the problem clearly. Then, we carry out formulations, analyses, and derivations of the model to attain the problem's cost function. We then use differential calculus and propose a specific algorithm to confirm the convexity of the obtained cost function and derive the optimal runtime. Finally, we offer a numerical illustration to demonstrate the result's applicability for other business circumstances. Additional elements of the problem are then discussed, including the individual and combined influence of variations in scrap, outsourcing, breakdown, and shipping frequency. The features of an optimal operating policy and cost relevant parameters are now revealed to assist management with strategic planning and decision making in real-world intra-supply-chain environments.

show abstract

Joint effects of stochastic machine failure, backorder of permissible shortage, rework, and scrap on stock replenishing decision

Cited by 5 publications

References 32 publications

A Markovian production-inventory system with consideration of random quality disruption

A Markovian production-inventory system with consideration of random quality disruption

Production-Inventory System for Deteriorating Items with Machine Breakdown, Inspection, and Partial Backordering

A vendor-buyer coordinated system featuring an unreliable machine, scrap, outsourcing, and multiple shipments

Contact Info

Product

Resources

About