The study examines the combined effect of rework, multiple shipments, postponement, and overtime producing common-component on a multiproduct vendor-client incorporated system. Clients’ product demand trend turns to diversity, quality, and rapid response in the current supply-chain environment. Under such a stiff competitive environment, today’s manufacturers must effectively plan their multi-item fabrication to boost utilization and product quality, minimize total relevant costs, and meet short given order lead time. By considering the commonality of the finished goods, required quality, and completion lead time, this study presents an exact model featuring rework of defects, multiple shipments, postponement, overtime producing the mutual component, and satisfying the market needs. Through the techniques of explicitly modeling, formulating, and system cost minimization, this study simultaneously derives the optimal cycle-time and shipping frequency for the studied problem. A numerical example helps show how our model works for any given parameter values and how the variation in single and multiple factors of the problem affects the crucial system performances (e.g., total uptimes, each relevant cost, utilization, total cost, etc.) A wide variety of today’s industries (e.g., automotive, household goods, etc.) and their related supply chains can utilize our decisional model to reveal in-depth managerial insights for planning their fabrication and shipments.

This study explores the optimal fabrication runtime for a buyer-vendor incorporated system featuring repairable items, stochastic breakdown, accelerated rate, and multi-delivery strategy. Operating in today’s competitive global market, transnational production firms make every effort to meet client requirements in terms of the due date and quality goods. Further, they also must handle all inevitable events incurred in the manufacturing process, such as unanticipated equipment breakdowns and defective products, with caution to avoid production schedule delay and cost overrun. To examine such a vendor-buyer incorporated system, we build a model to characterize the aforementioned features in the system. The function of total system cost is derived through formulation and analyses. The optimization method and a recursive algorithm are employed to help in deriving the optimal (i.e., cost minimization) fabrication runtime for our problem. An example numerically illustrates how our model, method, and algorithm work. It also reveals the capability of our model in analyzing the impact of each and/or joint feature(s) (e.g., the breakdown, accelerated rate, rework, multi-delivery strategy) on the system’s utilization, optimal runtime, total expenses, and individual cost contributor to assist in managerial decision making, and hence, enabling the firm to gain competitive advantage.