Traditional procurement policy was deeply investigated for many kinds of demand in different industrial sectors. More extensive explorations on procurement including the combination with manufacturing process and detailed attributes of the purchased products were conducted by many researchers. In manufacturing process, lifespan of machining tools have significant impact on both the quantity of procurement and production cost. In this paper, the impact of maximum allowable stopping time for machining tools on production-inventory policy under a stochastic production demands was investigated. A tool procurement policy with stochastic demand (TPPSD) was developed with which the allowable stopping time for tools and review cycle can be optimally determined by an exhaustive searching algorithm. Examples with different distributions on tool lifespan and production demand are presented to show the implementation of the TPPSD model. The results show that optimised combination of selection for tool allowable stopping time and review cycle time can dramatically minimise the total cost of the whole procurement activity.
For high-value added products, machining tools' lifespan significantly influences the quantity of procurement in machining process. Preemption of tools from the workpiece while processing is continuing is sometime beneficial to safeguard the product from the damage due to tool failure or its malfunction. Also an early discard of a tool is costly for the manufacturing operation. Therefore an optimal strategy for the tool life is sought here to determine the maximum allowable tool lifespan to preempt from the workpiece and to have an appropriate amount of tool stock in the crib to ascertain the proper running of the production schedule and tool inventory. Therefore, an impact of the machining tool lifespan on the production-inventory policy of the system is investigated in this paper. An integrated lifespan related inventory model for machining tools is developed to meet the responding accurate requirement of procurement and inventory. Two numerical examples are presented to illustrate the integrated model. The results show that the practical lifespan adoption of machining tools has significant impact on the whole quantity of procurement, and eventually influences the coordinating economic decision making.
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