This study examines the effect of delayed differentiation, outsourcing, expedited fabrication rate, and rework strategies on optimal cycle-time decisions for a multi-item manufacturing system. Today’s manufacturing firms must simultaneously deal with externally increasing client multi-item requirements with rapid lead-time and high-quality products and internally on a limited capacity. This study is aimed at assisting manufacturers in meeting client needs in conditions of restricted-capacity and minimum total operating expenses, and adopts a delayed differentiation two-stage multiproduct manufacturing scheme to manage the end products’ commonality. The first stage produces all required common components, and the second stage fabricates individual finished goods. In both stages, we adopt the reworking of the inevitable nonconforming items produced to assure product quality. Furthermore, we implemented partial outsourcing of common parts’ batch and expedited the manufacturing rate of finished products to effectively reduce the uptimes in both stages. We explicitly developed a model to describe the characteristics of the problem. Mathematical analyses with optimization proved the cost function’s convexity and determined the cost-minimization rotation cycle policy. Finally, we numerically validated our model’s and results’ applicability and capability with a simulated example. Apart from creating a useful decision model, this study makes another important contribution to the existing literature in that its revelation of collective/individual effect of the manufacturing-relevant methods on the problem’s best-operating cycle policy and crucial performance indices helps manufacturers have better control over their operations and make effective and efficient managerial decisions.
Internal supply chains exist in many global enterprises, where manufacturing tasks and sales jobs operate separately, but the management needs to integrate their financial performance reports. In addition, the fabrication planning must meet specific operational goals, such as meeting external clients’ requirements on quality and short order due dates, avoiding internal fabricating interruptions due to inevitable equipment breakdowns, and minimizing overall manufacturing and stock holding costs. Motivated by helping multinational corporations deal with the issues mentioned earlier, this study aims to optimize a finite production rate (FPR)-based supplier-retailer cooperative problem with multi-shipment, rework, subcontracting, probabilistic failure, and expedited rate. Wherein using an outsourcer and expedited-rate help shorten the needed batch producing time significantly; the rework of defects and corrective action on unanticipated breakdown assist in up-keeping the quality and avoiding fabricating delay. We develop an FPR-based model to cautiously represent the considered manufacturing features and activities involved in transporting end products and retailers’ stock holding. Model’s formulating and investigating assists us in gaining the function of operating costs. In addition, optimization procedures with a proposed algorithm help us verify its convexity and decide the model’s best fabricating runtime solution. Finally, we validate how this study works and what important information our model can disclose using a numerical example to facilitate management’s decision-making to end our work.
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