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

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.

Augmented Lagrangian Approach to the Newsvendor Model with Component Commonality

Component commonality is a well-known approach in manufacturing, where the same components are used for multiple products. It has been implemented by many established companies such as Airbus, Kodak, Toyota, etc. We consider a standard two-product inventory model with a common component. The demands for the products are independent random variables. Instead of the usual approach to minimize the total shortage quantity, we propose to minimize the total shortage cost. The resulting problem is a non-convex nonlinear mathematical program. We illustrate the use of a primal-dual proximal method to solve this problem by obtaining numerically the optimal allocations of components. In particular, we show that a higher unit shortage cost induces a higher allocation.

ANALISIS DAMPAK COMPONENT COMMONALITY TERHADAP SCHEDULE INSTABILITY PADA SISTEM RANTAI PASOK SEDERHANA

This study analyzed the impact of component commonality to schedule instability. Analysis was implemented in the use of component commonality (use of same component in different product structures) in a simple supply chain system which is consist of one manufacturer and two suppliers. Different operational conditions were introduced such as: demand uncertainty, product cost structure, product lead time, product structure and inventory policy that company utilized. The simulation results suggested that common component could reduce schedule instability in both manufacturer and suppliers. Furthermore, the results also indicated that suppliers were the more affected entities due to uncertainty rather than manufacturer

Optimal Design and Robustness Assessment of Product Family Considering Quantity Discounts in Supply Chain

Product family design generally aims at overhead reduction due to component commonality meeting various customer needs. Quantity discount is one of the most crucial factors to consider cost reduction effects. However, it also contains the risk of drastic profit decrease when a demand or supply capacity unexpectedly changes. This research aims at proposing an optimal design method of product family with assessment of robustness of expected profit. First, this paper discusses the structure of the optimal design problem of product family considering quantity discount in supply chain. The modeling of quantity discount faces a problem of discontinuous of design spaces. The discontinuity of a design space makes optimization more difficult. This research proposes a method to solve it with reasonable calculation cost by utilizing branch and bound and linear programming. A case study of designing a product family of drip coffee maker demonstrates the application of the proposed method in order to verify it.