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

Yuan Shyi Peter Chiu, Yunsen Wang, Chung Li Chou, Tiffany Chiu

Research output: Contribution to journalArticlepeer-review

3 Scopus citations


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.

Original languageEnglish
Pages (from-to)259-268
Number of pages10
JournalJournal of Applied Research and Technology
Issue number5
StatePublished - Oct 2020


  • Common intermediate part
  • Continuous issuing policy
  • Delayed product differentiation
  • Multiproduct manufacturing system
  • Overtime


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