scholarly journals The Collective Influence of Component Commonality, Adjustable-Rate, Postponement, and Rework on Multi-Item Manufacturing Decision

Mathematics ◽  
2020 ◽  
Vol 8 (9) ◽  
pp. 1570
Author(s):  
Singa Wang Chiu ◽  
Liang-Wei You ◽  
Tsu-Ming Yeh ◽  
Tiffany Chiu

The present study explores the collective influence of component commonality, adjustable-rate, postponement, and rework on the multi-item manufacturing decision. In contemporary markets, customer demand trends point to fast-response, high-quality, and diversified merchandise. Hence, to meet customer expectations, modern manufacturers must plan their multiproduct fabrication schedule in the most efficient and cost-saving way, especially when product commonality exists in a series of end products. To respond to the above viewpoints, we propose a two-stage multiproduct manufacturing scheme, featuring an adjustable fabrication rate in stage one for all needed common parts, and manufacturing diversified finished goods in stage two. The rework processes are used in both stages to repair the inevitable, nonconforming items and ensure the desired product quality. We derive the cost-minimized rotation cycle decision through modeling, formulation, cost analysis, and differential calculus. Using a numerical illustration, we reveal the collective and individual influence of adjustable-rate, rework, and postponement strategies on diverse critical system performances (such as uptime of the common part and/or end products, utilization, individual cost factor, and total system cost). Our decision-support model offers in-depth managerial insights for manufacturing and operations planning in a wide variety of contemporary industries, such as household merchandise, clothing, and automotive.

Author(s):  
Singa Wang Chiu ◽  
Victoria Chiu ◽  
Ming-Hon Hwang ◽  
Yuan-Shyi Peter Chiu

Production planners today must simultaneously face with the time and quality demands of various goods externally and meet limited capacity internally. This study presents a two-stage delayed- differentiation multiproduct model that considers the outsourcing options for common parts, overtime strategy for end products, and quality reassurance to assist in making fabrication runtime decisions that are cost-effective. Stage one produces all necessary common intermediate components for end products. To reduce stage one’s utilization/uptime, this study adopts a partial outsourcing option. Stage two uses an overtime strategy to fabricate end products that further shorten the uptime. The production processes in both phases are assumed to be imperfect. This study employs the reworking/scrapping of random faulty items to reassure product quality. The researchers build a model to depict the proposed problem’s characteristics and used the mathematical modeling, analysis, and optimization approach to determine the best rotation cycle length that minimizes the system’s expenses. Further, in this study, the researchers provide sensitivity analyses and a numerical illustration, which validate the result’s applicability and exhibit its capability. This result contributes to practical multiproduct-fabrication by (1) deriving the optimal manufacturing policy for a delayed-differentiation multiproduct system with dual uptime reduction policies and quality reassurance; and (2) offering a decisional model that allows production planners to explore the collective/separate effect of a quality-ensured and dual uptime reduction strategy on a problem’s operating policy and crucial system performance indicators, which assists in cost-effective decision-making.


Author(s):  
Takafumi Nakamura ◽  
Kyoich Kijima

In this paper, total system intervention for system failure (TSI for SF) is proposed for preventing further occurrences of system failures. TSI is a critical system practice for managing complex and differing viewpoints. First, the authors introduce meta-methodology called “system of system failures” (SOSF) as a common language among various stakeholders to improve their understanding of system failures. The actual application scenario is proposed: “TSI for SF.” The SOSF and related methodologies are used in the course of the subsequent discussion and debate to agree on who is responsible for the failure and identify the preventative measures to be applied. An application example in information and communication technologies engineering demonstrates that using the proposed “TSI for SF” helps prevent future system failures by learning from previous system failures. Three actions are identified for preventing further system failures: closing the gap between the stakeholders, introducing absolute goals, and enlarging system boundary.


2009 ◽  
Vol 2009 ◽  
pp. 1-27 ◽  
Author(s):  
Khaled Hadj Youssef ◽  
Christian van Delft ◽  
Yves Dallery

We consider a single-stage multiproduct manufacturing facility producing several end-products for delivery to customers with a required customer lead-time. The end-products can be split in two classes: few products with high volume demands and a large number of products with low-volume demands. In order to reduce inventory costs, it seems efficient to produce the high-volume products according to an MTS policy and the low volume products according to an MTO policy. The purpose of this paper is to analyze and compare the impact of the scheduling policy on the overall inventory costs, under customer lead-time service level constraints. We consider two policies: the classical FIFO policy and a priority policy (PR) which gives priority to low volume products over high volume products. We show that for some range of parameters, the PR rule can significantly outperform the FIFO rule. In these ranges, the service level constraints are satisfied by the PR rule with much lower inventory costs.


Author(s):  
Yuan-Shyi Peter Chiu ◽  
Huei-Hsin Chang ◽  
Tiffany Chiu ◽  
Singa Wang Chiu

Variety, quality, and rapid response are becoming a trend in customer requirements in the contemporary competitive markets. Thus, an increasing number of manufacturers are frequently seeking alternatives such as redesigning their fabrication scheme and outsourcing strategy to meet the client’s expectations effectively with minimum operating costs and limited in-house capacity. Inspired by the potential benefits of delay differentiation, outsourcing, and quality assurance policies in the multi-item production planning, this study explores a single-machine two-stage multi-item batch fabrication problem considering the abovementioned features. Stage one is the fabrication of all the required common parts, and stage two is manufacturing the end products. A predetermined portion of common parts is supplied by an external contractor to reduce the uptime of stage one. Both stages have imperfect in-house production processes. The defective items produced are identified, and they are either reworked or removed to ensure the quality of the finished batch. We develop a model to depict the problem explicitly. Modeling, formulation, derivation, and optimization methods assist us in deriving a cost-minimized cycle time solution. Moreover, the proposed model can analyze and expose the diverse features of the problem to help managerial decision-making. An example of this is the individual/ collective influence of postponement, outsourcing, and quality reassurance policies on the optimal cycle time solution, utilization, uptime of each stage, total system cost, and individual cost contributors.


Author(s):  
Yuan-Shyi P. Chiu ◽  
Jian-Hua Lian ◽  
Victoria Chiu ◽  
Yunsen Wang ◽  
Hsiao-Chun Wu

Manufacturing firms operating in today’s competitive global markets must continuously find the appropriate manufacturing scheme and strategies to effectively meet customer needs for various types of quality of merchandise under the constraints of short order lead-time and limited in-house capacity. Inspired by the offering of a decision-making model to aid smooth manufacturers’ operations, this study builds an analytical model to expose the influence of the outsourcing of common parts, postponement policies, overtime options, and random scrapped items on the optimal replenishment decision and various crucial system performance indices of the multiproduct problem. A two-stage fabrication scheme is presented to handle the products’ commonality and the uptime-reduced strategies to satisfy the short amount of time before the due dates of customers’ orders. A screening process helps identify and remove faulty items to ensure the finished lot’s anticipated quality. Mathematical derivation assists us in finding the manufacturing relevant total cost function. The differential calculus helps optimize the cost function and determine the optimal stock-replenishing rotation cycle policy. Lastly, a simulated numerical illustration helps validate our research result’s applicability and demonstrate the model’s capability to disclose the crucial managerial insights and facilitate manufacturing-relevant decision making.


Symmetry ◽  
2020 ◽  
Vol 12 (12) ◽  
pp. 1998
Author(s):  
Mohamed Seliaman ◽  
Leopoldo Cárdenas-Barrón ◽  
Sayeed Rushd

This paper extends and generalizes former inventory models that apply algebraic methods to derive optimal supply chain inventory decisions. In particular this paper considers the problem of coordinating production-inventory decisions in an integrated n-stage supply chain system with linear and fixed backorder costs. This supply chain system assumes information symmetry which implies that all partners share their operational information. First, a mathematical model for the supply chain system total cost is formulated under the integer multipliers coordination mechanism. Then, a recursive algebraic algorithm to derive the optimal inventory replenishment decisions is developed. The applicability of the proposed algorithm is demonstrated using two different numerical examples. Results from the numerical examples indicate that adopting the integer multiplier mechanism will reduce the overall total system cost as compared to using the common cycle time mechanism.


Author(s):  
Buddhadev Mandal ◽  
Bikash Koli Dey ◽  
Sudhansu Khanra ◽  
Biswajit Sarkar

The concept of advanced sustainable inventory manage- ment, where demand pattern stock level and advertising dependent under trade-credit policy is taking account in this present study. Opti- mal credit period and cycle time are the main objective of this advanced system. A developed solution methodology is derived to show the exis- tence of global optimality under optimum credit period and cycle time. The main concern of this advanced system is to maximize the annual total system pro t of retailer with nite replenishment rate. Numerical illustration are carry forward for di erent cases to prove the stainabil- ity along with real impact of this model. Sensitive analysis for the key parameters is discussed in sensitivity analysis section along with some real \managerial insights".


2011 ◽  
Vol 2 (3) ◽  
pp. 42-62
Author(s):  
Takafumi Nakamura ◽  
Kyoich Kijima

In this paper, total system intervention for system failure (TSI for SF) is proposed for preventing further occurrences of system failures. TSI is a critical system practice for managing complex and differing viewpoints. First, the authors introduce meta-methodology called “system of system failures” (SOSF) as a common language among various stakeholders to improve their understanding of system failures. The actual application scenario is proposed: “TSI for SF.” The SOSF and related methodologies are used in the course of the subsequent discussion and debate to agree on who is responsible for the failure and identify the preventative measures to be applied. An application example in information and communication technologies engineering demonstrates that using the proposed “TSI for SF” helps prevent future system failures by learning from previous system failures. Three actions are identified for preventing further system failures: closing the gap between the stakeholders, introducing absolute goals, and enlarging system boundary.


1983 ◽  
Vol 105 (2) ◽  
pp. 217-221 ◽  
Author(s):  
P. J. Hartman ◽  
P. Luetjen ◽  
D. Mandel

Assessment of total system reliability has been accomplished using component failure data in conjunction with system operating rules and sparing policies. This paper describes the computer simulation used by the Naval Sea Systems Command (NAVSEA) to predict the reliability and availability of each new Naval ship design. The computer program utilizes stochastic simulation to predict reliability, availability, and ordered lists of critical system components. This simulation is unique in that reliability block diagrams for the total system of 500 equipment can be readily translated into compact input coding. Assessment of total ship performance presently takes less than one minute using a vector super computer. This paper describes the methods used to predict long and short-term failures in such equipment as hydrofoil struts and highly complex electronic systems. Long and short-term failure data have been modeled using a Restricted Erlang Distribution for use in the simulation.


2022 ◽  
Vol 10 (1) ◽  
pp. 83-94 ◽  
Author(s):  
Hong-Dar Lin ◽  
Victoria Chiu ◽  
Hua-Yao Wu ◽  
Yuan-Shyi Peter Chiu

Operating in today’s turbulent and competitive world marketplaces, manufacturers must find the best production scheme and delivery policy to meet timely client’s multiproduct requirements and minimize the total manufacturing-shipment expenses. This study proposes a two-stage delayed differentiation model for a multiproduct manufacturer-retailer coordinated supply chain featuring the adjustable-rate for making common parts and a multi-shipment policy for transporting finished goods. The aim is to help present-day manufacturers achieve their operational goals mentioned above. The mathematical techniques help us build a specific model to explicitly represent the problem and derive its overall operating expense. Then, the convexity of the total expense is verified by Hessian matrix equations. The differential calculus helps derive the cost-minimized fabrication-shipment decision. This study offers an example to demonstrate the applicability and capabilities of our proposed model numerically. The following crucial information has been made available to the managers to facilitate their operating decision makings: (1) the problem’s best fabrication-shipment policy; (2) the collective influence of various common part’s completion rates and values on the problem’s total expenses and optimal fabrication-shipment policy; (3) the impact of various adjustable-rates in stage one on utilization and stage one’s uptime; (4) the details of cost contributors to the problem; and (5) the collective impacts of critical features on the problem’s performance.


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