The Total Cost Model: General Case

2020 ◽  
pp. 337-402
Author(s):  
Alexey Piunovskiy ◽  
Yi Zhang
Keyword(s):  
Cost Model ◽  
Total Cost

Optimization of Leased Equipment Maintenance Policy Based on History Failure Data

2021 ◽  
pp. 2150030
Author(s):  
Ke Dong ◽  
Kehong Chen
Keyword(s):  
Power Law ◽  
Cost Model ◽  
Maintenance Strategy ◽  
Maintenance Policy ◽  
Power Law Process ◽  
Total Cost ◽  
Cost Rate ◽  
Failure Data ◽  
Expected Total Cost ◽  
The Cost

We propose a maintenance policy for new equipment on a repair-refund maintenance strategy in this paper and derive the optimal lease period from the lessor’s perspective based on independent and identical distribution of historical failure data which obey power law process. The cost model of a full refund and a proportional refund is studied, and the corresponding optimal leasing period is determined by reducing the expected total cost rate to the largest extent. We use a numerical example to illustrate the proposed cost model and analyze the sensitivity of related parameters. Furthermore, we show that the proportional refund policy is preferable than a full refund to the lessor. Finally, according to the simulation outcome, the proposed methods are effective and instructions for lessor in regard to equipment lease are provided.

scholarly journals Cost-Optimization Problem with a Soft Time Window Based on an Improved Fuzzy Genetic Algorithm for Fresh Food Distribution

2018 ◽  
Vol 2018 ◽  
pp. 1-16 ◽  
Author(s):  
Yong Ming Wang ◽  
Hong Li Yin
Keyword(s):  
Genetic Algorithm ◽  
Cost Model ◽  
Research Work ◽  
Food Distribution ◽  
Food Plants ◽  
Total Cost ◽  
Fresh Food ◽  
Fuzzy Clustering Method ◽  
Fuzzy Genetic Algorithm ◽  
Fuzzy Genetic

Given the increasing demand for fresh food quality, fresh food plants must manage not only product cost but more importantly the product quality. The transportation requirements for fresh food delivery have been continuously increasing. The purpose of this paper is to develop a method to ensure that fresh food can be delivered just in time and with minimum total cost while maintaining the quality of fresh food. Considering that fresh food plants need multiple trucks to deliver multiple products to numerous geographically dispersed customers, the delivery of fresh food is considered in two stages in our study. The first stage is cluster consumers; that is, we determine to which consumers each truck is responsible for delivery. The second stage, which is based on the consumer grouping results, develops a total cost model that includes the transportation, refrigerated, devalued, and penalty costs incurred during distribution. This model is used to determine the optimal route selection, the temperature control, and the average speed of each truck in distribution. This paper designs decision variables based on a customer’s seven requirement attributes; it also proposes a fuzzy clustering method for grouping customers and improves a fuzzy genetic algorithm that is used to solve the proposed total cost model. The application of the proposed method is demonstrated using an example. The experimental results show that the proposed method has better performance than that of a traditional genetic algorithm. This research work provides an optimal distribution total cost decision method for the logistics managers. This research also provides an effective means to ensure the safety of fresh food.

Integration of Quality Cost into a Total Cost Model for a Distribution Network

2004 ◽  
Vol 24 (1) ◽  
pp. 33-44
Author(s):  
Carol Considine ◽  
Paul Kauffmann ◽  
David Dryer
Keyword(s):  
Cost Model ◽  
Distribution Network ◽  
Quality Cost ◽  
Total Cost

A Cost Model for Evaluating Alternative Manpower Input Strategies

1975 ◽  
Vol 17 (1) ◽  
pp. 42-51
Author(s):  
Thomas C. Davis ◽  
Patrick R. Pinto
Keyword(s):  
Cost Model ◽  
Direct Costs ◽  
Systematic Analysis ◽  
Total Cost ◽  
Staffing Model ◽  
Probability Estimates ◽  
Time Period ◽  
Manpower Requirement ◽  
Misclassification Errors ◽  
And Training

The question of how to obtain a specified quantity of satisfactory manpower inputs for a given time period is a problem which confronts almost any personnel decisionmaker. The staffing model proposed in this paper defines selection, training, and any selection/training combination as being alternative staffing strategies which are available for coping with an organization's manpower requirement problems. Very few personnel decisionmakers, however, approach such problems with any appreciable knowledge of the relative costs associated with different alternative input strategies and of the costs of different misclassification errors which can result. The staffing model described here incorporates cost and utility considerations and suggests that the relative costs of alternative staffing strategies are amenable to systematic analysis. The model specifies the probability estimates for success and failure in both selection and training, the direct costs for each, and the potential costs which result from errors of misclassification. Then, an expression and rationale for determining the minimum total cost associated with various combinations of selection and training strategies are presented.

scholarly journals Cloud Computing: Case Studies and Total Cost of Ownership

2011 ◽  
Vol 30 (4) ◽  
pp. 198 ◽  
Author(s):  
Yan Han
Keyword(s):  
Cloud Computing ◽  
Literature Review ◽  
Web Services ◽  
Case Studies ◽  
Web Applications ◽  
Cost Model ◽  
Total Cost Of Ownership ◽  
Total Cost ◽  
Cost Of Ownership ◽  
Amazon Web Services

This paper consists of four major sections: The first section is a literature review of cloud computing and a cost model. The next section focuses on detailed overviews of cloud computing and its levels of services: SaaS, PaaS, and IaaS. Major cloud computing providers are introduced, including Amazon Web Services (AWS),<br />Microsoft Azure, and Google App Engine. Finally, case studies of implementing web applications on IaaS and PaaS using AWS, Linode and Google AppEngine are demonstrated. Justifications of running on an IaaS provider (AWS) and running on a PaaS provider (Google AppEngine) are described. The last section discusses costs and technology analysis comparing cloud computing with local managed storage and servers. The total costs of ownership (TCO) of an AWS small instance are significantly<br />lower, but the TCO of a typical 10TB space in Amazon S3 are<br />significantly higher. Since Amazon offers lower storage pricing for huge amounts of data, the TCO might be lower. Readers should do their own analysis on the TCOs.

ON OPTIMUM MODULE SIZE FOR SOFTWARE INSPECTIONS

2007 ◽  
Vol 14 (03) ◽  
pp. 283-295 ◽  
Author(s):  
PANKAJ JALOTE ◽  
ASHOK K. MITTAL ◽  
RAM GOPAL PRAJAPAT
Keyword(s):  
Software Development ◽  
Design Of Experiments ◽  
Control Parameter ◽  
Cost Model ◽  
Cost Effective ◽  
Total Cost ◽  
Software Inspections ◽  
Inspection Process ◽  
Module Size ◽  
The Cost

Inspection is widely believed to be one of the most cost-effective methods for detection of defects in the work products produced during software development. However, the inspection process, by its very nature, is labor intensive and for delivering value, they have to be properly executed and controlled. While controlling the inspection process, the inspection module size is a key control parameter. Larger module size can lead to an increased leakage of defects which increases the cost since rework in the subsequent phases is more expensive. Small module size reduces the defect leakage but increases the number of inspections. In this paper, we formulate a cost model for an inspection process using which the total cost can be minimized. We then use the technique of Design of Experiments to study how the optimum module size varies with some of the key parameters of the inspection process, and determine the optimum module size for different situations.

The Implementation of Sampling Plan for Optimal Inspection Allocation in Multi-Station Systems with Consideration of Rework

2010 ◽  
Vol 450 ◽  
pp. 393-396
Author(s):  
Hsin Rau ◽  
Yi Hsiang Wang ◽  
Kuo Hua Cho
Keyword(s):  
Production System ◽  
Cost Model ◽  
Sampling Plan ◽  
Quality Level ◽  
Sampling Plans ◽  
Serial Production ◽  
Total Cost ◽  
Proper Sampling

This study explores sampling plans for optimal inspection allocation in multi-station systems with consideration of rework. After components have processed from each workstation in a serial production system, we can apply different sampling plans for inspection in order to maintain the outgoing quality level. The defective components that are detected at each sampling plan will return to the specific workstation to rework. This study proposes a minimum total cost model with a proper sampling plan after each workstation, which can help people to manager production better.

Cost-optimization modelling for fresh food quality and transportation

2016 ◽  
Vol 116 (3) ◽  
pp. 564-583 ◽  
Author(s):  
Dilupa Nakandala ◽  
Henry Lau ◽  
Jingjing Zhang
Keyword(s):  
Genetic Algorithms ◽  
Supply Chain ◽  
Product Quality ◽  
Cost Model ◽  
Food Products ◽  
Repair Mechanism ◽  
Content Type ◽  
Total Cost ◽  
Fresh Food ◽  
Fuzzy Genetic

Purpose – All along the length of the supply chain, fresh food firms face the challenge of managing both product quality, due to the perishable nature of the products, and product cost. The purpose of this paper to develop a method to assist logistics managers upstream in the fresh food supply chain in making cost optimized decisions regarding transportation, with the objective of minimizing the total cost while maintaining the quality of food products above acceptable levels. Design/methodology/approach – Considering the case of multiple fresh food products collected from multiple farms being transported to a warehouse or a retailer, this study develops a total cost model that includes various costs incurred during transportation. The practical application of the model is illustrated by using several computational intelligence approaches including genetic algorithms (GA), fuzzy genetic algorithms (FGA) as well as an improved simulated annealing (SA) procedure applied with a repair mechanism for efficiency benchmarking. The authors demonstrate the practical viability of these approaches by using a simulation study based on pertinent data and evaluate the simulation outcomes. Findings – The application of the proposed total cost model was demonstrated using three approaches of GA, FGA and SA with a repair mechanism. All three approaches are adoptable; however, based on the performance evaluation, it was evident that the FGA is more likely to produce a better performance than the other two approaches of GA and SA. Practical implications – This study provides a pragmatic approach for supporting logistics and supply chain practitioners in fresh food industry in making important decisions on the arrangements and procedures related to the transportation of multiple fresh food products to a warehouse from multiple farms in a cost-effective way without compromising product quality. Originality/value – This study extends the literature on cold supply chain management by investigating cost and quality optimization in a multi-product scenario from farms to a retailer and, minimizing cost by managing the quality above expected quality levels at delivery. The scalability of the proposed generic function enables the application to alternative situations in practice such as different storage environments and transportation conditions, etc.

An Economic Study on Chemical Mechanical Polishing of Silicon Wafers

2009 ◽  
Author(s):  
Emmanuel A. Baisie ◽  
Man Yang ◽  
Ravindra Kaware ◽  
Maria Hooker ◽  
Z. C. Li ◽  
...  
Keyword(s):  
Chemical Mechanical Polishing ◽  
Cost Model ◽  
Labor Cost ◽  
Silicon Wafers ◽  
Mechanical Polishing ◽  
Wafer Surface ◽  
Variable Cost ◽  
Fixed Cost ◽  
Economic Study ◽  
Total Cost

Chemical mechanical polishing (CMP) is used to remove irregularities on the silicon wafer surface. The importance of CMP is the achievement of both local and global planarity of wafer surface. This paper presents an economic study on CMP of silicon wafers. A cost model is developed to predict the total cost for CMP of silicon wafers. An input-output model is developed to analyze parameters relevant to the fixed cost and variable cost. The labor cost is investigated through a flow chart of the labor operation. Based on the cost model, a hypothetical case study is conducted to show the model’s capability of performing sensitivity analysis and identifying critical factors for the total cost for strategic management purposes.

Integration of Quality Cost into a Total Cost Model for a Distribution Network

2006 ◽  
Vol 25 (1) ◽  
pp. 73-85
Author(s):  
Carol Considine ◽  
Paul Kauffmann ◽  
David A. Dryer
Keyword(s):  
Cost Model ◽  
Distribution Network ◽  
Quality Cost ◽  
Total Cost
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