Optimization of an economic production quantity-based system with random scrap and adjustable production rate

Yuan-Shyi, Chiu Peter; Chen, Han-Ying; Chiu, W.; Chiu, Victoria

doi:10.5937/jaes16-15458

Cited by 16 publications

(6 citation statements)

References 23 publications

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“…(25) and (26)), and solve the linear system, we can get n* and Q* as expressed in Eqs. (27) and (28).…”

Section: Optimal Lot Size and Frequency Of Deliveriesmentioning

confidence: 96%

“…Extra studies [20][21] also investigated systems with diverse overtime policies. With the similar objectives of expediting production cycle times, papers that explored manufacturing systems with various features of adjustable/variable production rate or outsourcing option can be referred to [22][23][24][25][26][27]. Moreover, various intra-supply chain systems undoubtedly exist in current transnational enterprises, wherein, the operating objective is to minimize total system cost consisting of the fabrication-inventory cost, products' transportation cost, and end items' holding cost at the sales offi ces.…”

Section: Introductionmentioning

confidence: 99%

See 1 more Smart Citation

A decision model for a quality-assured EPQ-based intra-supply chain system considering overtime option

Lin¹,

Chen²,

Chiu³

et al. 2019

J Appl Eng Science

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In order to gain competitive advantages, managers of present-day supply chain systems need to achieve critical operation goals, such as keeping fl exible fabrication schedule, retaining product quality, maintaining timely delivery, and lowering overall operating costs. Inspired by these factors, this study developed a decision model for managers to investigate the joint impacts of quality-assured issues, overtime, and multi-shipment plan on optimal fabrication-shipment policy and on diverse system parameters of the economic production quantity (EPQ)-based supply chain system. An imperfect fabrication process producing perfect quality, repairable, and scrap items is assumed in the proposed system, along with assumptions of a fl exible overtime schedule to partially expedite fabrication rate and a discontinuous multi-delivery policy for distributing end products. With a help from mathematical modeling and optimization method, the closed-form optimal fabrication-shipment policy is derived. A numerical example was employed to demonstrate applicability of our result and to expose critical managerial information of the system for supporting decision-making.

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“…(25) and (26)), and solve the linear system, we can get n* and Q* as expressed in Eqs. (27) and (28).…”

Section: Optimal Lot Size and Frequency Of Deliveriesmentioning

confidence: 96%

Section: Introductionmentioning

confidence: 99%

A decision model for a quality-assured EPQ-based intra-supply chain system considering overtime option

Lin¹,

Chen²,

Chiu³

et al. 2019

J Appl Eng Science

Self Cite

View full text Add to dashboard Cite

show abstract

“…They demonstrated via a numerical example how their results work and crucial managerial decision-related information is accessible via their system. Other works [6][7][8][9] investigated the effects of diverse aspects of expedited fabrication rates on the production and operations planning. The imperfect fabrication process comprising the production of random nonconforming items and failures of the machine.…”

Section: Introductionmentioning

confidence: 99%

The influence of expedited fabrication rate, unreliable machines, scrap, and rework on the production runtime decision in a vendor-buyer coordinated environment

Peter

Wang²,

Chiu

et al. 2021

J Appl Eng Science

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Transnational manufacturing firms operate in highly competitive marketplaces. This means that they are continuously seeking ways to reduce order response and fabrication cycle times, maintain the desired product quality, manage unanticipated machine failures, and provide timely delivery to effectively minimize overall operating cost and maintain a competitive advantage over their intra-supply chains. To assist firms in achieving these operational goals, we examine a buyer-vendor coordinated system with an expedited fabrication rate, unreliable machines, scrap, and rework, with the objective of minimizing the overall operating costs. An imperfect manufacturing process is assumed, which arbitrarily produces repairable and scrap items, with the latter being reworked in each fabrication cycle. Additionally, the process is subject to a Poisson-distributed machine breakdown. The corrective action is undertaken immediately when the machine fails, and the production of unfinished/interrupted lot resumes when the process is restored. The expedited fabrication rate option is used at an extra cost to reduce the cycle length. We built a fabrication-shipment model to characterize the problem’s features explicitly. Mathematical and optimization approaches assist us in determining the optimal fabrication runtime policy. A numerical example illustrates the capability/applicability of our outcomes. Furthermore, it exposes a diverse set of information relating to the collective/individual effect of differences in the expedited rates, mean-time-to-breakdown, frequency of shipment, and rework/disposal rates of defective items on the optimal policy, utilization, total operating cost, and various cost contributors. This information can contribute to facilitating better decision-making.

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“…Numeral illustrations demonstrated their results. Other studies [25][26][27][28][29][30] investigated the effect of different flexible rates and overtime strategies on manufacturing-inventory systems and supply-chain management. Since few prior works concentrated on examining the collective and individual impact of delayed differentiation, expedited rate, and random scrap on the EPQ-based system, our aim is to fill the gap.…”

Section: Introductionmentioning

confidence: 99%

Mathematical modelling for multiproduct EPQ problem featuring delayed differentiation, expedited rate, and scrap

Chiu

Lin

Wang³

et al. 2020

IJEM

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The client requirements of present-day markets emphasize product quality, variety, and rapid response. To gain competitive advantages in marketplaces and meet customer needs, manufacturers today seek the most economical and fastest fabrication schemes and strategies to produce their various goods, especially when commonality exists within these multiple end products. Inspired by the above viewpoints, this study uses a mathematical modelling approach for solving a multiproduct economic production quantity (EPQ) problem featuring scrap, delayed differentiation, and expedited rate on the fabrication of the common part. We build a two-stage multiproduct fabrication scheme. Stage one uses an accelerated rate to produce all necessary common parts for multi-item to shorten its uptime, while stage two fabricates finished products sequentially using a rotation cycle rule. Inevitable random scraps produced in both stages are identified and removed to achieve the anticipated quality. We determined the optimal costminimization operating cycle length and used a numerical example to show our model's capability and to explore collective and individual impacts of scrap, expedited-rate, and postponement strategies on various performances of the studied problem (such as uptime of common part, utilization, rotation cycle time, total system cost, and individual cost contributor, etc.) Our model can offer an optimization solution and in-depth managerial insights for fabrication and operations planning in a wide variety of present-day industries, such as automotive, household goods, clothing, etc.

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Optimization of an economic production quantity-based system with random scrap and adjustable production rate

Cited by 16 publications

References 23 publications

A decision model for a quality-assured EPQ-based intra-supply chain system considering overtime option

A decision model for a quality-assured EPQ-based intra-supply chain system considering overtime option

The influence of expedited fabrication rate, unreliable machines, scrap, and rework on the production runtime decision in a vendor-buyer coordinated environment

Mathematical modelling for multiproduct EPQ problem featuring delayed differentiation, expedited rate, and scrap

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