scholarly journals A producer-retailer incorporated multi-item EPQ problem with delayed differentiation, the expedited rate for common parts, multi-delivery and scrap

2021 ◽  
Vol 12 (4) ◽  
pp. 427-440 ◽  
Author(s):  
Yuan-Shyi Peter Chiu ◽  
Tiffany Chiu ◽  
Fan-Yun Pai ◽  
Hua Yao Wu
Keyword(s):  
Hessian Matrix ◽  
Collective Effects ◽  
Mathematical Methods ◽  
Critical System ◽  
Economic Production Quantity ◽  
Delayed Differentiation ◽  
Economic Production ◽  
Crucial Information ◽  
Production Quantity ◽  
The Cost

Transnational producers facing the present-day competitive global supply-chain environments need to pursue the most appropriate manufacturing scheme, quality screening task, and stock shipping plan to satisfy customer’s timely multi-item requirements under minimum overall product fabrication-delivery expenses. This study develops a producer-retailer incorporated multi-item two-stage economic production quantity- (EPQ-) based system with delayed differentiation, expedited-rate for common parts, multiple deliveries plan, and random scrap. It aims to assist current manufacturing firms in achieving the aforementioned operating goals. Mathematical methods help us build an analytical model to explicitly portray the studied problem’s features and derive its overall system expenses. Hessian matrix equations and optimization approaches help us prove convexity and derive the cost-minimized fabrication- delivery decision. This study gives a simulated example to illustrate the research outcome’s applicability and the proposed model’s capabilities numerically. Consequently, diverse crucial information becomes obtainable to the manufacturers to facilitate various operating decision makings as follows: (i) the cost-minimized fabrication-delivery policy; (ii) the behavior of system’s overall expenses and operating policy regarding mean scrap rate, and different relationships between common part’s values and completion-rate; (iii) the system’s detailed cost components; (iv) the system’s overall expenses, utilization, and common part’s uptime concerning different common part’s expedited rates; and (v) the collective effects of critical system features on the overall expenses, uptime, and optimal cycle length, etc.

Fuzzy Economic Production Quantity Model for Weibull Deteriorating Items with Ramp Type of Demand

2011 ◽  
Vol 2 (3) ◽  
pp. 55-90 ◽  
Author(s):  
R. Uthayakumar ◽  
M. Valliathal
Keyword(s):  
Deteriorating Items ◽  
Quantity Discounts ◽  
Setup Cost ◽  
Economic Production Quantity ◽  
Deterministic Demand ◽  
Economic Production ◽  
Holding Cost ◽  
Production Quantity ◽  
Delay In Payments ◽  
The Cost

This paper discusses an Economic Production Quantity model for Weibull deteriorating items over an infinite time horizon under fuzzy environment. Fuzziness is introduced by allowing the cost components such as setup cost, production cost, holding cost, shortage cost and opportunity cost due to lost sales to certain extent. Triangular fuzzy numbers are used to represent the mentioned costs. Optimum policies of the described models under fuzzy costs are derived. The proposed model can be extended in several ways. For instance, the deterministic demand function to stochastic fluctuating demand patterns could be considered. The model could also be generalized to allow for quantity discounts, as well as permissible delay in payments.

Using of EOQ and EPQ Methods in Minimizing Inventory Cost of Crude Palm Oil

2020 ◽  
Vol 4 (1) ◽  
pp. 36
Author(s):  
Linda Kumala Sari ◽  
Sajaratud Dur ◽  
Ismail Husein
Keyword(s):  
Palm Oil ◽  
Crude Palm Oil ◽  
Inventory Cost ◽  
Inventory Costs ◽  
Economic Production Quantity ◽  
Economic Production ◽  
Production Quantity ◽  
Total Inventory ◽  
The Difference ◽  
The Cost

<span lang="EN-US">Excess or lack of inventory that is too large is a problem that can trigger increased costs so that companies do not get the benefits they should. The purpose of this study is to minimize the cost of inventories of crude palm oil using the EOQ (Economic Order Quantity) method and EPQ (Economic Production Quantity) methods at PT. Perkebunan Nusantara IV (Persero) Medan. From the results it is known that economic orders according to the EOQ method in 2017 amounted to 2.741,222 tons and in 2018 amounted to 2.825,927 tons. The difference in total inventory costs generated using the EOQ method and company conditions in 2017 amounted to Rp71.605.439.976,17 and in 2018 amounting to Rp60.884.174.907,3. The optimal amount of production (EPQ) in 2017 and 2018 was 146.226,147 tons. The difference in total inventory costs generated using the EPQ method and the condition of the company in 2017 and 2018 amounted to Rp102.771.704.121,63.</span>

scholarly journals An EPQ Model with Unit Production Cost and Set-Up Cost as Functions of Production Rate

2013 ◽  
Vol 2013 ◽  
pp. 1-6 ◽  
Author(s):  
Behrouz Afshar-Nadjafi
Keyword(s):  
Production Rate ◽  
Production Cost ◽  
Continuous Functions ◽  
Optimal Production ◽  
Economic Production Quantity ◽  
Economic Production ◽  
Epq Model ◽  
Production Quantity ◽  
Set Up ◽  
The Cost

Extensive research has been devoted to economic production quantity (EPQ) problem. However, no attention has been paid to problems where unit production and set-up costs must be considered as functions of production rate. In this paper, we address the problem of determining the optimal production quantity and rate of production in which unit production and set-up costs are assumed to be continuous functions of production rate. Based on the traditional economic production quantity (EPQ) formula, the cost function associated with this model is proved to be nonconvex and a procedure is proposed to solve this problem. Finally, utility of the model is presented using some numerical examples and the results are analyzed.

scholarly journals A Geometric Programming Solution to an Economic Production Quantity Model with Ranking Fuzzy Numbers Cost Parameters

2019 ◽  
Vol 8 (2S3) ◽  
pp. 747-750
Keyword(s):  
Numerical Model ◽  
Geometric Programming ◽  
Fuzzy Numbers ◽  
Programming Method ◽  
Economic Production Quantity ◽  
Economic Production ◽  
Production Quantity ◽  
Cost Parameters ◽  
The Cost ◽  
Programming Solution

on this paper, a financial creation quantity is figured to hold up a era framework with restrict, adaptability, unwavering first-class, and circumstance supportability with switch fee of non-appealing object. The cost parameters are spoken to as a trapezoidal fluffy numbers and those fluffy numbers are communicated as positioning fluffy numbers with satisfactory guess period in-between. Geometric programming method is attached to determine the precise selections in close from. A numerical model is given to help the difficulty.

scholarly journals Multiproduct manufacturer-retailer coordinated supply chain with adjustable rate for common parts, delayed differentiation, and multi-shipment

2022 ◽  
Vol 10 (1) ◽  
pp. 83-94 ◽  
Author(s):  
Hong-Dar Lin ◽  
Victoria Chiu ◽  
Hua-Yao Wu ◽  
Yuan-Shyi Peter Chiu
Keyword(s):  
Supply Chain ◽  
Hessian Matrix ◽  
Specific Model ◽  
Delayed Differentiation ◽  
Crucial Information ◽  
Mathematical Techniques ◽  
Adjustable Rate ◽  
The Cost ◽  
Collective Influence ◽  
The Impact

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.

Fuzzy Economic Production Quantity Model for Weibull Deteriorating Items with Ramp Type of Demand

2012 ◽  
pp. 225-261
Author(s):  
M. Valliathal ◽  
R. Uthayakumar
Keyword(s):  
Deteriorating Items ◽  
Quantity Discounts ◽  
Setup Cost ◽  
Economic Production Quantity ◽  
Deterministic Demand ◽  
Economic Production ◽  
Production Quantity ◽  
Delay In Payments ◽  
The Cost ◽  
Demand Patterns

This paper discusses an Economic Production Quantity model for Weibull deteriorating items over an infinite time horizon under fuzzy environment. Fuzziness is introduced by allowing the cost components such as setup cost, production cost, holding cost, shortage cost and opportunity cost due to lost sales to certain extent. Triangular fuzzy numbers are used to represent the mentioned costs. Optimum policies of the described models under fuzzy costs are derived. The proposed model can be extended in several ways. For instance, the deterministic demand function to stochastic fluctuating demand patterns could be considered. The model could also be generalized to allow for quantity discounts, as well as permissible delay in payments.

scholarly journals The effect of service constraint on EPQ model with random defective rate

2006 ◽  
Vol 2006 ◽  
pp. 1-5 ◽  
Author(s):  
Yung-Fu Huang
Keyword(s):  
Annual Cost ◽  
Differential Calculus ◽  
Cost Minimization ◽  
Algebraic Approach ◽  
Optimal Solution ◽  
Service Level ◽  
Economic Production Quantity ◽  
Economic Production ◽  
Epq Model ◽  
Production Quantity

Chiu studied the effect of service-level constraint on the economic production quantity (EPQ) model with random defective rate. In this note, we will offer a simple algebraic approach to replace his differential calculus skill to find the optimal solution under the expected annual cost minimization.

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