Optimization of an intra-supply chain system with unreliable production facility

Singa, Wang Chiu; Chen, Hsin-Mei; Lin, Hong-Dar; Yuan-Shyi, Peter Chiu

doi:10.5937/jaes16-16399

Cited by 5 publications

(2 citation statements)

References 29 publications

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“…The author examined and discussed the effect of demand increase/decrease on production rate flexibility and formulated a generalized cost model relating to maintaining certain required demand levels. Other studies explored diverse features of adjustable rates on the planning and controlling fabrication systems, including the impact of variable markup rates (Arcelus & Srinivasan, 1987), variable production rates (Giri & Dohi, 2005;Chiu, et al, 2018b), storage capacity with various repair rates (Ameen, et al, 2018), and the expedited rates with quality issues (Chiu, et al, 2019c;Chiu, et al, 2019d).…”

Section: Literature Reviewmentioning

confidence: 99%

Management and Production Engineering Review

Chiu

Lin

et al. 2021

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Facing severely competitive global markets, managers of the modern transnational corporations must effectively integrate its intra-supply chain system to meet customers' multiproduct demands with good quality items, minimum operating expenses, and in a timely delivery matter. Inspired by assisting current transnational firms to achieve the mission, this study builds a mathematical model to explore a multiproduct fabrication-shipment problem incorporating an accelerated rate and ensured product quality. A single machine production scheme under a common cycle policy and with random defects, rework, and an accelerated fabrication rate is considered. The speedy rate option is associated with extra setup and linear variable costs, which aims to cut short the common cycle time. Mathematical derivation is employed to find the long-run average system expense. The optimization method is used to jointly derive the decision for common length and delivery frequency per cycle for the problem. Numerical illustration is offered to confirm the applicability of the results and expose the individual/combined influences of diverse crucial system features on the problem, thus facilitate the intra-supply chain's fabrication-shipment decision making.

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Section: Literature Reviewmentioning

confidence: 99%

Management and Production Engineering Review

Chiu

Lin

et al. 2021

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“…Their objectives were to decide the optimal procurement, production, and shipment strategies that minimize the combined system costs. Additional works that investigated diverse features of multi-shipment policies in different aspects of supply chain systems can be found elsewhere [25][26][27][28][29]. Since few studies focused on exploring the combined effects of outsourcing, in-house quality assurance matters, and multiple deliveries on the optimal fabrication-delivery policy, this paper aims to fill the gap.…”

Section: Introductionmentioning

confidence: 99%

Incorporating an outsourcing strategy and in-house quality assurance into the production-shipment decision making

Chiu¹,

Li²,

Chiu³

et al. 2022

J Appl Eng Science

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To stay competitive in turbulent business environments, manufacturing firms’ managers today constantly seek ways to reduce order response time, smooth production schedules, ensure the quality of their products, and lower overall making and shipping costs. This study incorporates an outsourcing strategy and in-house quality assurance into a production-shipment problem to address the aforementioned operational goals. The objectives are to simultaneously find the optimal fabrication batch size and frequency of delivery that minimize the system’s relevant costs and reveal in-depth information regarding the impact of diverse system parameters on the optimal policy and system cost. This study develops a model and uses the optimization method to resolve the problem. The research results facilitate managerial decisions in such a real-life situation.

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