Mathematical modelling for a fabrication–inventory problem with scrap, an acceptable stock-out level, stochastic failures and a multi-shipment policy
While planning for batch manufacturing, determining the optimal runtime that minimizes total system costs is equally important and so is maintaining high product quality, keeping the batch process environment free of disruption, and ensuring timely delivery of end products to meet market demand. Owi...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
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Taylor & Francis Group
2019-01-01
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| Series: | Arab Journal of Basic and Applied Sciences |
| Subjects: | |
| Online Access: | http://dx.doi.org/10.1080/25765299.2018.1553547 |
| _version_ | 1818440976643915776 |
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| author | Singa Wang Chiu Han-Ying Chen Hua Yao Wu Yuan-Shyi Peter Chiu |
| author_facet | Singa Wang Chiu Han-Ying Chen Hua Yao Wu Yuan-Shyi Peter Chiu |
| author_sort | Singa Wang Chiu |
| collection | DOAJ |
| description | While planning for batch manufacturing, determining the optimal runtime that minimizes total system costs is equally important and so is maintaining high product quality, keeping the batch process environment free of disruption, and ensuring timely delivery of end products to meet market demand. Owing to the imperfect nature of the fabrication process, both the production of random scrap and machine failures are inevitable and require special treatment. Permitting an acceptable level of shortages with backordering is often considered an effective approach to reduce inventory costs and lower the total system costs. Moreover, for delivering end products, a periodic multi-shipment policy is commonly adopted in real supply chain systems. To cope with the aforementioned realistic factors, this study explores a fabrication–inventory problem that considers scrap items, an acceptable level of stock outs with backordering, stochastic machine failures, and a multi-shipment policy. A mathematical model is built to accurately represent the problem. An optimization method along with an algorithm is presented to derive optimal production uptime that minimizes total system costs. Using a numerical example, we demonstrate that this precise model and its solution process can not only provide an optimal decision, but also reveal diverse and valuable system characteristics including (1) details of cost components of the system and (2) the individual and joint impact of system factors, such as product quality, service-level constraints, machine failures, number of deliveries, and uptime in the proposed problem. Without such an in-depth exploration, these important system characteristics remain inaccessible and unknown to production managers. |
| first_indexed | 2024-12-14T18:20:55Z |
| format | Article |
| id | doaj.art-a431a6d21e5e4ce7b7a1b9eeeb718fce |
| institution | Directory Open Access Journal |
| issn | 2576-5299 |
| language | English |
| last_indexed | 2024-12-14T18:20:55Z |
| publishDate | 2019-01-01 |
| publisher | Taylor & Francis Group |
| record_format | Article |
| series | Arab Journal of Basic and Applied Sciences |
| spelling | doaj.art-a431a6d21e5e4ce7b7a1b9eeeb718fce2022-12-21T22:52:05ZengTaylor & Francis GroupArab Journal of Basic and Applied Sciences2576-52992019-01-01261587110.1080/25765299.2018.15535471553547Mathematical modelling for a fabrication–inventory problem with scrap, an acceptable stock-out level, stochastic failures and a multi-shipment policySinga Wang Chiu0Han-Ying Chen1Hua Yao Wu2Yuan-Shyi Peter Chiu3Chaoyang University of TechnologyChaoyang University of TechnologyState University of New York at OswegoState University of New York at OswegoWhile planning for batch manufacturing, determining the optimal runtime that minimizes total system costs is equally important and so is maintaining high product quality, keeping the batch process environment free of disruption, and ensuring timely delivery of end products to meet market demand. Owing to the imperfect nature of the fabrication process, both the production of random scrap and machine failures are inevitable and require special treatment. Permitting an acceptable level of shortages with backordering is often considered an effective approach to reduce inventory costs and lower the total system costs. Moreover, for delivering end products, a periodic multi-shipment policy is commonly adopted in real supply chain systems. To cope with the aforementioned realistic factors, this study explores a fabrication–inventory problem that considers scrap items, an acceptable level of stock outs with backordering, stochastic machine failures, and a multi-shipment policy. A mathematical model is built to accurately represent the problem. An optimization method along with an algorithm is presented to derive optimal production uptime that minimizes total system costs. Using a numerical example, we demonstrate that this precise model and its solution process can not only provide an optimal decision, but also reveal diverse and valuable system characteristics including (1) details of cost components of the system and (2) the individual and joint impact of system factors, such as product quality, service-level constraints, machine failures, number of deliveries, and uptime in the proposed problem. Without such an in-depth exploration, these important system characteristics remain inaccessible and unknown to production managers.http://dx.doi.org/10.1080/25765299.2018.1553547optimizationmathematical modellingfabrication–inventory problemmachine failurebackloggingscrapmulti-shipment policy |
| spellingShingle | Singa Wang Chiu Han-Ying Chen Hua Yao Wu Yuan-Shyi Peter Chiu Mathematical modelling for a fabrication–inventory problem with scrap, an acceptable stock-out level, stochastic failures and a multi-shipment policy Arab Journal of Basic and Applied Sciences optimization mathematical modelling fabrication–inventory problem machine failure backlogging scrap multi-shipment policy |
| title | Mathematical modelling for a fabrication–inventory problem with scrap, an acceptable stock-out level, stochastic failures and a multi-shipment policy |
| title_full | Mathematical modelling for a fabrication–inventory problem with scrap, an acceptable stock-out level, stochastic failures and a multi-shipment policy |
| title_fullStr | Mathematical modelling for a fabrication–inventory problem with scrap, an acceptable stock-out level, stochastic failures and a multi-shipment policy |
| title_full_unstemmed | Mathematical modelling for a fabrication–inventory problem with scrap, an acceptable stock-out level, stochastic failures and a multi-shipment policy |
| title_short | Mathematical modelling for a fabrication–inventory problem with scrap, an acceptable stock-out level, stochastic failures and a multi-shipment policy |
| title_sort | mathematical modelling for a fabrication inventory problem with scrap an acceptable stock out level stochastic failures and a multi shipment policy |
| topic | optimization mathematical modelling fabrication–inventory problem machine failure backlogging scrap multi-shipment policy |
| url | http://dx.doi.org/10.1080/25765299.2018.1553547 |
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