TY - JOUR
T1 - A postponement model for multi-item replenishment decision considering overtime, commonality, and quality reassurance
AU - Chiu, Yuan Shyi Peter
AU - Chiu, Victoria
AU - Wang, Yunsen
AU - Hwang, Ming Hon
N1 - Publisher Copyright:
© 2020 by the authors; licensee Growing Science, Canada.
PY - 2020/9/1
Y1 - 2020/9/1
N2 - 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.
AB - 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.
KW - Common cycle time
KW - Multiproduct replenishment decision
KW - Overtime
KW - Postponement
KW - Product quality reassurance Commonality
UR - http://www.scopus.com/inward/record.url?scp=85090700727&partnerID=8YFLogxK
U2 - 10.5267/j.ijiec.2020.6.001
DO - 10.5267/j.ijiec.2020.6.001
M3 - Article
AN - SCOPUS:85090700727
SN - 1923-2926
VL - 11
SP - 509
EP - 524
JO - International Journal of Industrial Engineering Computations
JF - International Journal of Industrial Engineering Computations
IS - 4
ER -