Make-To-Order Production Planning With Seasonal Supply In Canned Pineapple Industry

2021 ◽  
Author(s):  
Kanapath Plangsrisakul ◽  
Tuanjai Somboonwiwat ◽  
Chareonchai Khompatraporn
Keyword(s):  
Production Planning ◽  
Planning Horizon ◽  
Labor Cost ◽  
Raw Material ◽  
Supply Uncertainty ◽  
Make To Order ◽  
Total Profit ◽  
Holding Cost ◽  
The Cost ◽  
Inventory Holding

This research studies a make-to-order production planning in a canned pineapple industry. Pineapple is a seasonal perishable fruit. Thus, the cost of fresh pineapple which is the main raw material in canned pineapple is inexpensive during its season. The color of the pineapple also determines the price of the canned pineapple. However, the availability of different colors (called “choice” and “standard”) is dependent. Specifically, if the ratio of the choice color is more, the ratio of the other color is less. There are several costs involve such as fresh pineapple cost, can cost, sugar cost, water cost, labor cost, energy cost, and inventory cost. The problem is formulated as a mathematical model to maximize the total profit over four-months planning horizon. Two supply uncertainty cases are tested which are low and high ratios of the choice color. The results show that the profit depends on available color ratios of the pineapple. The production planning is best if it matches with the availability of the color ratios. In certain months, some fresh pineapple purchased exceed the need of the production because of the dependency of the two colors. The inventory holding cost also influences the production decision—whether to produce the canned pineapple in earlier months or it is better to produce only the canned pineapple when it is needed to serve the customer orders.

Fuzzy Available-to-Promise System Modelling under Supplier Uncertainty

2011 ◽  
Vol 383-390 ◽  
pp. 4535-4540
Author(s):  
Tony Halim ◽  
Kanesan Muthusamy
Keyword(s):  
Programming Model ◽  
Planning Horizon ◽  
System Modelling ◽  
Order Fulfillment ◽  
Supply Uncertainty ◽  
Customer Order ◽  
Material Requirement ◽  
Holding Cost ◽  
Order Promising ◽  
The Cost

Available-To-Promise (ATP) function is an important tool in supply chain management to enhance the responsiveness of order promising and the reliability of order fulfillment. ATP models provide responses to customer order enquiries, based on resource availability, allowing the user to determine whether they should accept the order. Currently, many of the ATP models available adopt a deterministic approach and do not address uncertainties in the manufacturing environment. In this paper, a fuzzy mathematical programming model is proposed to address the problem of order-promising under an environment of supply uncertainty. The model aims to minimize the cost of rejecting orders, failing to meet promised orders and inventory holding cost of the finished products and supply materials. In addition to order promising, the model also performs order-fulfillment and provides a master production schedule of each product and material requirement planning of each supply material over the given planning horizon. To solve the fuzzy mathematical model, an approach based on possibility and necessity theory is applied.

scholarly journals Dynamic sourcing strategies for supply disruptions under consumer stockpiling

2021 ◽  
Author(s):  
Shanshan Li ◽  
Yong He ◽  
Li Zhou
Keyword(s):  
Order System ◽  
Joint Decision ◽  
Sourcing Strategies ◽  
Make To Order ◽  
Sourcing Strategy ◽  
Holding Cost ◽  
Future Consumption ◽  
Inventory Holding ◽  
Relative Factors

AbstractThis paper considers a make-to-order system where production gets disrupted due to a random supply failure. To avoid potential stock-out risk and responding price increase during disruption, customers might decide to stockpile extra units for future consumption. We investigate the contingent sourcing strategy for the manufacturer to cope with the disruption. To this end, we first discuss the optimal post-disruption stockpiling decision for customers. In view of expected disruption duration, price rise, and inventory holding cost, three types of stockpiling behavior are analytically provided for the customers: non-stockpiling, gradual stockpiling, and instantaneous stockpiling. Next, a model is formulated to optimize the joint decision of contingent sourcing time and quantity, with the objective of maximizing profit expectation. Finally, by conducting numerical analysis, we generate further insights into the role of relative factors and provide specific managerial suggestions on how to adapt dynamic contingent sourcing strategies to alleviate different disruptions, under different market environments and customer behaviors.

Some Studies in Multi-Storage Inventory System

2016 ◽  
pp. 176-200
Author(s):  
Shyamal Kumar Mondal
Keyword(s):  
Planning Horizon ◽  
Inventory System ◽  
Mixed Integer ◽  
Lot Size ◽  
Continuous Release ◽  
Demand Rate ◽  
Cycle Lengths ◽  
Holding Cost ◽  
Inventory Holding ◽  
And Storage

In this chapter, a multi-storage inventory system has been considered to develop a deterministic inventory model in finite planning horizon. Realistically, it is shown that due to large stock and insufficient space of existing own warehouse (OW); excess items are stored in single rented warehouse (RW). Due to different preserving facilities and storage environment, inventory holding cost is considered to be different in different warehouses. Here, the replenishment cycle lengths are of equal length, the demand rate is a continuous linear increasing function of time and partially backlogged shortages are allowed in all cycles. In each cycle, the replenishment cost is assumed to be dependent linearly on lot size and the stocks of RW are also transported to OW in continuous release pattern. The model is formulated as a constrained non-linear mixed integer cost objective function under single management. Finally, results with a sensitivity analysis have been shown with the help of a real coded GA.

A Methodology for the Comprehensive Assessment of International Procurement Costs

2012 ◽  
Author(s):  
Michael D. Johnson ◽  
William J. Sawaya ◽  
Malini Natarajarathinam
Keyword(s):  
Cost Model ◽  
Low Cost ◽  
Labor Cost ◽  
Location Decisions ◽  
Illustrative Case ◽  
Manufacturing Costs ◽  
Holding Costs ◽  
Illustrative Case Study ◽  
The Cost ◽  
Inventory Holding

As the economy becomes more globalized and competitive, firms are manufacturing goods in a wider variety of locations. This may be to reduce costs by moving to a low cost country or to place production closer to potential customers. What is often lacking in these decisions is a holistic assessment of the costs associated with production location decisions. Too often the assessment is focused only on a limited set of cost factors (e.g., direct manufacturing and shipping) and does not take into account the dynamic nature of some costs. To address these limitations a comprehensive cost model to assess the cost of procuring goods from alternative locations is presented. A methodology is detailed for monetizing the numerous costs associated with international procurement. An illustrative case study analyzing the procurement of goods from two locations in Mexico and one in the US is detailed. Results of the case show that the non-direct manufacturing costs associated with procurement (e.g., inventory holding costs and shipping) can be greater than direct manufacturing costs. The effects of fuel and labor cost sensitively on the alternative locations is also detailed.

scholarly journals Tinjauan Kapasitas Persediaan Produk Fuji Seat PT. Tri Jaya Teknik Karawang

2021 ◽  
Vol 5 (1) ◽  
pp. 33
Author(s):  
Aries Adiyanto ◽  
Dene Herwanto
Keyword(s):  
Raw Materials ◽  
Raw Material ◽  
Economic Order Quantity ◽  
Economic Order ◽  
Order Quantity ◽  
Administrative Costs ◽  
Eoq Model ◽  
Engineering Company ◽  
Holding Cost ◽  
The Cost

PT. Tri Jaya Teknik Karawang is an engineering company engaged in fabrication, machining and side parts. PT. Tri Jaya Teknik started pioneering a business since 2007 and started owning and occupying its own workshop in 2009. Currently the company already has 2 plant workshops with a total area of 3,080 m2 and has about 100 employees. One of the products produced is Fuji seat, based on the data collected there are 3 parts of the process. The 3 parts of the process are repair 1, repair 2, repair 3. With each there is a check parts & packing table. The method used in companies to manage raw material inventories is still conventional, namely by making continuous purchases without estimating according to needs. So that there is often an excess of raw materials or a shortage of raw materials at a certain time, this makes the costs incurred inefficient and often disrupts the production process. A review of the inventory capacity of Fuji Seat products in this study was carried out using the Economic Order Quantity (EOQ) model. The main raw material inventory data used is Fuji Seat in the 2016-2019 period. Holding cost raw materials is set by PT. Tri Jaya Teknik Karawang is 2.5% of the price per pcs, this value is used for procurement and repair of tools and equipment in the warehouse. If there is no damage, the cost is allocated to the warehouse manager in that month. Meanwhile, the cost of ordering which consists of the price of goods and shipping costs is determined by PT. Tri Jaya Teknik Karawang, amounting to IDR 100,000.00. This fee includes administration and transportation costs. Administrative costs, namely executive salaries and other supporters, as well as taxes related to the company. The cost of shipping transport is the distance traveled and the weight of the product ordered. Based on the calculation of EOQ (Economic Order Quantity), the most economical amount of raw materials using the EOQ model is 6,815.5 Pcs with 187 purchases a year. PT. Tri Jaya Teknik Karawang adalah perusahaan engineering yang bergerak di bidang fabrikasi, machining dan part samping. PT. Tri Jaya Teknik mulai merintis bisnis sejak tahun 2007 dan mulai memiliki dan menempati workshop sendiri di tahun 2009. Saat ini perusahaan telah memiliki 2 plant workshop dengan total luas 3.080 m2 dan memiliki karyawan berjumlah sekitar 100 orang. Salah satu produk yang dihasilkan adalah fuji seat, berdasarkan data yang dikumpulkan ada 3 bagian proses. 3 bagian proses itu adalah repair 1, repair 2, repair 3. Dengan masing-masing terdapat meja check part & packing. Metode yang digunakan pada perusahaan untuk mengelola persediaan bahan baku masih secara konvensional, yaitu dengan melakukan pembelian terus menerus tanpa memperkirakan sesuai dengan kebutuhan. Sehingga seringkali terjadi kelebihan bahan baku atau kekurangan bahan baku di saat tertentu, hal ini membuat biaya yang dikeluarkan menjadi tidak efisien dan sering kali mengganggu proses produksi. Tujuan penelitian ini yaitu mampu mengetahui perhitungan EOQ dan frekuensi pembelian yang paling ekonomis dalam perusahaan. Tinjauan kapasitas persediaan produk Fuji Seat dalam penelitian ini dilakukan dengan menggunakan model Economic Order Quantity (EOQ). Data persediaan bahan baku utama yang digunakan adalah Fuji Seat pada periode 2016-2019.Biaya penyimpanan bahan baku di tetapkan oleh pihak PT. Tri Jaya Teknik Karawang sebesar 2,5% dari harga per pcs, nilai tersebut digunakan untuk keperluan pengadaan dan perbaikan 

scholarly journals Strategic Inventory Positioning in BOM with Multiple Parents Using ASR Lead Time

2016 ◽  
Vol 2016 ◽  
pp. 1-9 ◽  
Author(s):  
Jingjing Jiang ◽  
Suk-Chul Rim
Keyword(s):  
Lead Time ◽  
Solution Procedure ◽  
Optimal Position ◽  
Work In Process ◽  
Make To Order ◽  
Holding Cost ◽  
Total Inventory ◽  
Inventory Holding Cost ◽  
Inventory Holding ◽  
Optimal Set

In order to meet the lead time that the customers require, work-in-process inventory (WIPI) is necessary at almost every station in most make-to-order manufacturing. Depending on the station network configuration and lead time at each station, some of the WIPI do not contribute to reducing the manufacturing lead time of the final product at all. Therefore, it is important to identify the optimal set of stations to hold WIPI such that the total inventory holding cost is minimized, while the required due date for the final product is met. The authors have presented a model to determine the optimal position and quantity of WIPI for a given simple bill of material (S-BOM), in which any part in the BOM has only one immediate parent node. In this paper, we extend the previous study to the general BOM (G-BOM) in which parts in the BOM can have more than one immediate parent and present a new solution procedure using genetic algorithm.

scholarly journals Strategic WIP Inventory Positioning for Make-to-Order Production with Stochastic Processing Times

2017 ◽  
Vol 2017 ◽  
pp. 1-7 ◽  
Author(s):  
Jingjing Jiang ◽  
Suk-Chul Rim
Keyword(s):  
Lead Time ◽  
Processing Times ◽  
Work In Process ◽  
Make To Order ◽  
Stochastic Processing ◽  
Holding Cost ◽  
Inventory Holding Cost ◽  
Wip Inventory ◽  
Inventory Holding ◽  
Stochastic Processing Times

It is vital for make-to-order manufacturers to shorten the lead time to meet the customers’ requirements. Holding work-in-process (WIP) inventory at more stations can reduce the lead time, but it also brings about higher inventory holding cost. Therefore, it is important to seek out the optimal set of stations to hold WIP inventory to minimize the total inventory holding cost, while meeting the required due date for the final product at the same time. Since the problem with deterministic processing times at the stations has been addressed, as a natural extension, in this study, we address the problem with stochastic processing times, which is more realistic in the manufacturing environment. Assuming that the processing times follow normal distributions, we propose a solution procedure using genetic algorithm.

scholarly journals The integrated uncapacitated lot sizing and bin packing problem

2021 ◽  
Author(s):  
Natã Goulart ◽  
Thiago Ferreira de Noronha ◽  
Martin Gomez Ravetti ◽  
Mauricio Cardoso de Souza
Keyword(s):  
Bin Packing ◽  
Lot Sizing ◽  
Packing Problem ◽  
Planning Horizon ◽  
Mixed Integer ◽  
Holding Costs ◽  
Bin Packing Problem ◽  
Combinatorial Relaxation ◽  
The Cost ◽  
Inventory Holding

In the integrated uncapacitated lot sizing and bin packing problem, we have to couple lot sizing decisions of replenishment from single product suppliers with bin packing decisions in the delivery of client orders. A client order is composed of quantities of each product, and the quantities of such an order must be delivered all together no later than a given period. The quantities of an order must all be packed in the same bin, and may be delivered in advance if it is advantageous in terms of costs. We assume a large enough set of homogeneous bins available at each period. The costs involved are setup and inventory holding costs and the cost to use a bin as well. All costs are variable in the planning horizon, and the objective is to minimize the total cost incurred. We propose mixed integer linear programming formulations and a combinatorial relaxation where it is no longer necessary to keep track of the specific bin where each order is packed. An aggregate delivering capacity is computed instead. We also propose heuristics using different strategies to couple the lot sizing and the bin packing subproblems. Computational experiments on instances with different configurations showed that the proposed methods are efficient ways to obtain small optimality gaps in reduced computational times.

scholarly journals STRUKTUR BIAYA, KEUNTUNGAN, DAN NILAI TAMBAH AGROINDUSTRI GULA KELAPA DI KECAMATAN NEGERI KATON KABUPATEN PESAWARAN

2021 ◽  
Vol 8 (2) ◽  
pp. 206
Author(s):  
Ayla Vilin Windyata ◽  
Dwi Haryono ◽  
Maya Riantini
Keyword(s):  
Transportation Cost ◽  
Labor Cost ◽  
Cost Structure ◽  
Raw Material ◽  
Added Value ◽  
Survey Method ◽  
Cost Component ◽  
Value Analysis ◽  
Profit Analysis ◽  
The Cost

This research aims to analyze the structure of costs, profit, and added value of coconut agroindustry.  This research was a survey method of 38 coconut sugar agroindustries in Negeri Katon Subdistrict, Pesawaran Regency.  The data of this research were collected in December 2019 - January 2020.  The analytical methods used in this research were cost structure analysis of total costs, profit analysis based on revenue and total costs, and Hayami added value analysis.  The results of this research indicated that the biggest cost component of the cost structure of coconut sugar production were palm juice (44.21%), then followed by labor cost (24.22%), firewood cost (15.43%), transportation cost (8.45%), wooden box cost (3.47%), tool depreciation cost (1.67%), sodium cost (1.55%), plastic cost (0.69%), and whiting cost (0.31%).  Coconut sugar agroindustry in Negeri Katon Subdistrict Pesawaran Regency received profit as much as IDR1,549,174.33/month.  Added value of coconut sugar was IDR1,111.22/liter of raw material.  It indicated that coconut sugar agroindustry in Negeri Katon Subdistrict Pesawaran Regency had a positive added value and feasible to be developed.Key words: agroindustry, coconut sugar, cost structure, profit, added value

scholarly journals PENGARUH RAW MATERIALS COST DAN DIRECT LABOR COST TERHADAP COST OF PRODUCTION PADA UMKM DI KOTA BATAM

2021 ◽  
Vol 5 (2) ◽  
pp. 1-7
Author(s):  
Baru Harahap
Keyword(s):  
Quantitative Research ◽  
Raw Materials ◽  
Labor Cost ◽  
Raw Material ◽  
Labor Costs ◽  
Regression Methods ◽  
Material Costs ◽  
Material Cost ◽  
Independent Variable ◽  
The Cost

The purpose of this study was to find out whether the cost of raw materials and direct labor costs had an effect on the increase in production. In this quantitative research two types of variables are used, namely the independent variable is Raw Material Cost, Direct Labor Cost  and the dependent variable is Increased Production Results. Sampling is done by the technique used, namely purposive sampling. Data analysis using Classical Assumptions and Multiple Linear Regression methods. The results of the study were processed using SPSS 20, it can be seen that the Raw Material Cost has a tcount of 4.616 with a significance probability of 0.000, concluded that Raw Material Costs  partially have a positive and significant effect on Increasing Production Cost of Direct Labor Costs  has t count of 4.944 with a significance of 0,000 can be concluded that Direct Labor Costs  partially have a positive and significant effect on Increasing Production Results. The F test shows the Fcount value of 71,270 and significance of 0,000b means that there is a significant effect between Raw Material Costs  and Direct Labor Costs on Increasing Production Results.

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