Combining the delayed differentiation policy and common parts' partial outsourcing strategy into a multi-item FPR-based system

Singa, Chiu Wang; Zhao, Zhong-Yun; Chiu, Tiffany; Yuan-Shyi, Chiu Peter

doi:10.5937/jaes18-23877

Cited by 2 publications

(1 citation statement)

References 25 publications

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“…The researchers applied their proposed framework to twenty-eight cases from the literature to verify and demonstrate its applicability. Recent works [4][5][6][7] also examined the effect of various postponement strategies on the operations planning and management of multi-item manufacturing systems. This study considers the reworking of inevitable defective stocks produced in the proposed multi-item manufacturing system.…”

Section: Survey Of Previous Researchmentioning

confidence: 99%

Optimizing a multiproduct manufacturing system with delayed differentiation, outsourcing, expedited rate, and rework strategies

Chiu¹,

Ke²,

Chiu³

et al. 2021

J Appl Eng Science

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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.

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Section: Survey Of Previous Researchmentioning

confidence: 99%

Optimizing a multiproduct manufacturing system with delayed differentiation, outsourcing, expedited rate, and rework strategies

Chiu¹,

Ke²,

Chiu³

et al. 2021

J Appl Eng Science

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Multi-Item Production Lot Sizing with Postponement, External Source for Common Parts, and Adjustable Rate for End Products

Chiu¹,

Wu²,

Chiu³

et al. 2021

Int J Math, Eng, Manag Sci

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This study considers a multi-item production lot-size problem incorporating postponement, an external source for common parts, and an adjustable-rate for end products. Dealing with product variety, timely requirements, and limited in-house capacity has led production managers to seek manufacturing schemes and utilization-reduction strategies that can help them meet customer needs, smoothen fabrication schedules, and lower overall manufacturing expenses. We propose a two-stage manufacturing scheme. The first stage produces common parts for multiproduct incorporating a partial supply from an outside contractor to reduce utilization/uptime. Stage two fabricates all end products using an adjustable-rate to reduce the uptime further. We build a model to characterize the problem’s features and use optimization methods to derive the optimal rotation cycle time in order to help managers make cost-effective lot-size decisions and allow manufacturers to gain competitive advantages. A numerical illustration validates the model’s capability and applicability. This study makes two important contributions: (1) It offers a decision-support model for studying such a particular batch-size problem and deciding the optimal rotation cycle time, and (2) it identifies the individual/collective influence of dual uptime-reduction strategies on the operating policy and various performance indexes to help facilitate managerial decision-making.

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Combining the delayed differentiation policy and common parts' partial outsourcing strategy into a multi-item FPR-based system

Cited by 2 publications

References 25 publications

Optimizing a multiproduct manufacturing system with delayed differentiation, outsourcing, expedited rate, and rework strategies

Optimizing a multiproduct manufacturing system with delayed differentiation, outsourcing, expedited rate, and rework strategies

Multi-Item Production Lot Sizing with Postponement, External Source for Common Parts, and Adjustable Rate for End Products

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