Incorporating an expedited rate, rework, and a multi-shipment policy into a multi-item stock refilling system

Chiu, Singa Wang; Wu, Cheng-Sian; Tseng, Chao-Tang

doi:10.1016/j.orp.2019.100115

Cited by 14 publications

(12 citation statements)

References 20 publications

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“…3 to Fig. 5), the scrap, finished stock, and buyer stock levels in condition two of the proposed system is as follows (Chiu et al, 2019c):…”

Section: Condition 2: No Breakdown Happens During T1πmentioning

confidence: 99%

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A vendor-buyer coordinated system featuring an unreliable machine, scrap, outsourcing, and multiple shipments

Chiu¹,

Zhao²,

Chiu³

et al. 2020

10.5267/j.ijiec

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Operating in today's highly competitive global markets, transnational enterprises always seek to optimize internal vendor-buyer coordinated systems to ensure timeliness and quality deliveries, given the reality of unreliable machines and limited capacity. To facilitate accurate decision making to help organizations gain competitive advantages in such situations, this study explores an intra-supply-chain problem featuring a partial outsourcing batch fabrication plan, random scrap, Poisson-distributed breakdown rate, and multiple shipments of end-product. First, we build a model to characterize the problem clearly. Then, we carry out formulations, analyses, and derivations of the model to attain the problem's cost function. We then use differential calculus and propose a specific algorithm to confirm the convexity of the obtained cost function and derive the optimal runtime. Finally, we offer a numerical illustration to demonstrate the result's applicability for other business circumstances. Additional elements of the problem are then discussed, including the individual and combined influence of variations in scrap, outsourcing, breakdown, and shipping frequency. The features of an optimal operating policy and cost relevant parameters are now revealed to assist management with strategic planning and decision making in real-world intra-supply-chain environments.

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“…3 to Fig. 5), the scrap, finished stock, and buyer stock levels in condition two of the proposed system is as follows (Chiu et al, 2019c):…”

Section: Condition 2: No Breakdown Happens During T1πmentioning

confidence: 99%

“…(9) to (11) and total holding stocks in cycle time T'π can be computed by the use of Eq. (12)(Chiu et al, 2019c).…”

mentioning

confidence: 99%

A vendor-buyer coordinated system featuring an unreliable machine, scrap, outsourcing, and multiple shipments

Chiu¹,

Zhao²,

Chiu³

et al. 2020

10.5267/j.ijiec

Self Cite

View full text Add to dashboard Cite

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“…12. Total inventories during the product distribution time t' 3π (Chiu et al, 2019b) is exhibited in Eq. (13).…”

Section: The Proposed Modelmentioning

confidence: 99%

“…Total inventories at the buyer side during the cycle length T' π can be calculated (Chiu et al, 2019b) as shown in Eq. 14.…”

Section: The Status Of Buyer's Stocks In Casementioning

confidence: 99%

“…The authors claimed their approach could be generalized for boarder applications. Additional works (Arabi, Dehshiri, & Shokrgozar, 2018;Bolaños, Escobar, & Echeverri, 2018;Chiu, Wu, & Tseng, 2019b;Morales, Franco, & Mendez-Giraldo, 2018;Nielsen & Saha, 2018;Paz, Granada-Echeverri, & Escobar, 2018;Puška, Kozarević, Stević, & Stovrag, 2018;Stažnik, Babić, & Bajor, 2017;Zhao, Qian, Nakamura, & Nakagawa, 2018) studied the influence of distinct features of multiple deliveries on various types of manufacturingtransportation and supply-chain systems. Few prior works have investigated the joint influence of breakdowns, outsourcing, multiple deliveries, and rework/disposal of defective stocks on the optimal batch-fabrication runtime decision, this work aims to fill the gap.…”

Section: Introductionmentioning

confidence: 99%

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Optimal hybrid inventory replenishment runtime for a vendor- buyer coordinated system with breakdowns and rework/disposal of nonconforming items

Chiu

Sung

2020

JART

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Most multinational/transnational manufacturers that own internal supply chains and operate in turbulent world markets apply strategies related to product quality, low-cost, and timely delivery. This study aims to assist such firms with making accurate decisions to enable their competitive strategies and cope with the realities of limited capacity and unreliable equipment. We examine a vendor-buyer coordinated system featuring batch fabrication, outsourcing, quality reassurance, discontinuous deliveries, and an unreliable machine. The system outsources a portion of a lot to reduce manufacturing uptime, and the in-house fabrication system experiences undesirable defective items and Poisson distributed breakdowns. In each cycle, corrective action and rework/disposal of defective stocks are undertaken as these incidents occur, and upon receipt of outsourced products and when the entire batch is quality ensured, it makes multiple deliveries of the end products. Using modeling, formulation, derivation, and an optimization methodology, we obtain the problem’s cost function and justify its convexity. We then apply differential calculus and propose a recursive algorithm to derive the problem’s optimal replenishment runtime. A numerical illustration is offered to show the applicability of the result that reveals various important system characteristics/ capabilities, such as the distinct and combined influences of breakdowns, outsourcing, rework, scrap, and delivery-frequency factors on various system parameters, performance, and optimal runtime. The methods proposed here can facilitate managerial operations planning and strategic decision making in an intra-supply chain setting in practice.

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A two-stage multiproduct EMQ-based model with delayed differentiation and overtime option for common part’s fabrication

Chiu

Wang

Chou

et al. 2020

JART

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This study explores the two-stage multiproduct economic manufacturing quantity (EMQ)-based system with delayed product differentiation and overtime option for fabrication of common parts. The classic EMQ model determines optimal lot size under assumptions of steady production rate; however, managers of present-day’s manufacturing firms, operating in a highly competitive global business environment, must constantly seeks ways to strengthen their competitive forces, such strategies include: (i) to increase machine utilization through planning multiproduct fabrication; (ii) to evaluate different production schemes to reduce cost, e.g., a delayed differentiation strategy, when a common intermediate product exists in a multiproduct system, wherein all required common parts are manufactured in stage one and final multi-product are produced in the second stage; and (iii) to reduce the cycle time through implementing an overtime strategy. This study is motivated and intended to address the aforementioned real factors. We use mathematical modeling to depict the problem first, then employ the optimization technique to solve it. Our objectives are to not only decide the optimal replenishing policy, but also to explore the effect and joint influence of the postponement and overtime strategy on the optimal policy, machine utilization, system costs, and relevant cost components in the system. Without this in-depth investigation, various crucial information relating to decision making will still be inaccessible to managers in this field.

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Incorporating an expedited rate, rework, and a multi-shipment policy into a multi-item stock refilling system

Cited by 14 publications

References 20 publications

A vendor-buyer coordinated system featuring an unreliable machine, scrap, outsourcing, and multiple shipments

A vendor-buyer coordinated system featuring an unreliable machine, scrap, outsourcing, and multiple shipments

Optimal hybrid inventory replenishment runtime for a vendor- buyer coordinated system with breakdowns and rework/disposal of nonconforming items

A two-stage multiproduct EMQ-based model with delayed differentiation and overtime option for common part’s fabrication

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