A postponement model for multi-item replenishment decision considering overtime, commonality, and quality reassurance

This study develops a postponement model for the multi-item replenishment decision featuring commonality, an overtime strategy, and product quality reassurance. A single machine is used to meet the steady demand for multiple products wherein product commonality exists among these end products. The p...

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Main Authors: Yuan-Shyi Peter Chiu, Victoria Chiu, Yunsen Wang, Ming-Hon Hwang
Format: Article
Language:English
Published: Growing Science 2020-06-01
Series:International Journal of Industrial Engineering Computations
Subjects:
Online Access:http://www.growingscience.com/ijiec/Vol11/IJIEC_2020_14.pdf
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author Yuan-Shyi Peter Chiu
Victoria Chiu
Yunsen Wang
Ming-Hon Hwang
author_facet Yuan-Shyi Peter Chiu
Victoria Chiu
Yunsen Wang
Ming-Hon Hwang
author_sort Yuan-Shyi Peter Chiu
collection DOAJ
description This study develops a postponement model for the multi-item replenishment decision featuring commonality, an overtime strategy, and product quality reassurance. A single machine is used to meet the steady demand for multiple products wherein product commonality exists among these end products. The proposed postponement model assumes that all pertinent common parts are fabricated in Stage 1 and the finished products are sequentially fabricated in Stage 2. Random nonconformance rates are associated with both fabrication stages, the repairable nonconforming common parts are separated from scrap, and reworking in each cycle helps ensure product quality for each completed batch. An overtime strategy is used to reduce the lengthy fabrication and rework times for common parts. Mathematical analyses and derivation allow us to obtain the total system costs. The optimization method helps find the optimal replenishment decision. We provide a numerical illustration to show (1) how our model works; (2) the individual impact of the system features (e.g., the overtime factor, commonality in terms of the common part completion rate and its relative value, and the issues pertaining to scrap/rework) on the optimal decision, utilization, and the total system cost; and (3) the collective influence of system features on the highlighted problem. This proposed decision-support model helps production managers achieve the operating goals of lowering total system expenses and cutting the length of the production cycle.
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spelling doaj.art-c04d964c0cbb4d30b31ed138d29e683d2022-12-21T23:27:20ZengGrowing ScienceInternational Journal of Industrial Engineering Computations1923-29261923-29342020-06-0111450952410.5267/j.ijiec.2020.6.001A postponement model for multi-item replenishment decision considering overtime, commonality, and quality reassuranceYuan-Shyi Peter ChiuVictoria ChiuYunsen Wang Ming-Hon HwangThis study develops a postponement model for the multi-item replenishment decision featuring commonality, an overtime strategy, and product quality reassurance. A single machine is used to meet the steady demand for multiple products wherein product commonality exists among these end products. The proposed postponement model assumes that all pertinent common parts are fabricated in Stage 1 and the finished products are sequentially fabricated in Stage 2. Random nonconformance rates are associated with both fabrication stages, the repairable nonconforming common parts are separated from scrap, and reworking in each cycle helps ensure product quality for each completed batch. An overtime strategy is used to reduce the lengthy fabrication and rework times for common parts. Mathematical analyses and derivation allow us to obtain the total system costs. The optimization method helps find the optimal replenishment decision. We provide a numerical illustration to show (1) how our model works; (2) the individual impact of the system features (e.g., the overtime factor, commonality in terms of the common part completion rate and its relative value, and the issues pertaining to scrap/rework) on the optimal decision, utilization, and the total system cost; and (3) the collective influence of system features on the highlighted problem. This proposed decision-support model helps production managers achieve the operating goals of lowering total system expenses and cutting the length of the production cycle.http://www.growingscience.com/ijiec/Vol11/IJIEC_2020_14.pdfmultiproduct replenishment decisionpostponementovertimeproduct quality reassurancecommonalitycommon cycle time
spellingShingle Yuan-Shyi Peter Chiu
Victoria Chiu
Yunsen Wang
Ming-Hon Hwang
A postponement model for multi-item replenishment decision considering overtime, commonality, and quality reassurance
International Journal of Industrial Engineering Computations
multiproduct replenishment decision
postponement
overtime
product quality reassurance
commonality
common cycle time
title A postponement model for multi-item replenishment decision considering overtime, commonality, and quality reassurance
title_full A postponement model for multi-item replenishment decision considering overtime, commonality, and quality reassurance
title_fullStr A postponement model for multi-item replenishment decision considering overtime, commonality, and quality reassurance
title_full_unstemmed A postponement model for multi-item replenishment decision considering overtime, commonality, and quality reassurance
title_short A postponement model for multi-item replenishment decision considering overtime, commonality, and quality reassurance
title_sort postponement model for multi item replenishment decision considering overtime commonality and quality reassurance
topic multiproduct replenishment decision
postponement
overtime
product quality reassurance
commonality
common cycle time
url http://www.growingscience.com/ijiec/Vol11/IJIEC_2020_14.pdf
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