This study aims to optimize a hybrid multi-item fabricating-shipping integrated system incorporating scrap, adjustable rate, and postponement. In present-day competitive market environments, there is a clear client demand trend for various goods, shorter lead time, and expected quality. To satisfy the client’s needs, the management of manufacturing firms requires an effective and efficient plan to fabricate various high-quality goods in an expedited period, under limited capacity, and with minimal operating expenses. Inspired by facilitating production management to determine the best fabricating scheme/plan to achieve their operational goals, this work proposes an exploratory postponement model with quality assurance and uptime reduction strategies for their decision-making. By employing a two-phase making scheme, the required standard components are first made in the 1st phase, and multiple finished merchandise is fabricated in the 2nd phase. The study suggests strategies of contracting out a part of the common parts’ batch and adopting an adjusted/expedited making rate in the 2nd phase to considerably reduce both phases’ production uptimes. During both fabricating processes, the screening tasks identify/remove scrapped/faulty goods to ensure each finished batch’s quality. Equal-amount multiple shipments of end merchandise are transported to the clients in fixed time-interval. Optimization methodology and mathematical analyses support us in deriving the model’s expected annual operating cost and deciding the optimal production-transportation policy. A numerical illustration helps verify our model’s applicability and reveals important managerial insights into the studied problem to facilitate management in decision-making.

When making a batch production decision for a buyer-vendor coordination system, the management must simultaneously consider the operating expenses incurred in in-house manufacturing and inventory, finished goods’ shipping, and stock holding at the retailer end. Achieving the operational goals of desirable quality, minimal production disruption, and shortening fabrication time help minimize overall in-house operating costs and maximize customer satisfaction. This work builds an operating cost minimization model for buyer-vendor coordination batch system with scrap, breakdowns, overtime, multi-shipment, and an external source to assist the management in optimizing their production-delivery plan. Removing inevitable scrap items ensures product quality, and correction action on stochastic equipment breakdown prevents unacceptable production delays. Implementing partial overtime and adopting an external source expedites in-house manufacturing time. Model construction and cost analysis enable us to decide the operating expense function. Then, we verify the function’s convexity and decide our model’s best manufacturing runtime with the differential calculus and a proposed algorithm. Furthermore, the numerical demonstrations are used to exhibit our work’s applicability and show what kinds of crucial in-depth information can be disclosed and made accessible to the production planners for their decision-making.

The present research explores the collective influence of quality assurance and postponement on a hybrid multiproduct replenishing-delivery decision-making. Assume the required multiproduct has a standard (common) component, and our replenishing-delivery model has incorporated a two-phase postponement strategy. The first phase makes all standard components and hires an external supplier to partially provide the required parts to cut short the needed uptime. In contrast, the second phase fabricates the finished multiproduct in sequence. To ensure the desired merchandise quality, we apply a quality-assurance action to the in-house processes to screen and remove scrap items and rework the repairable defects in both stages. Upon completing each merchandise, these products are transported to the customer in n fixed-quantity shipment in fixed-time intervals. We employ math modeling and formulating approaches to gain the overall supply-chain operating expenses comprising subcontracting, fabricating, stock holding, transportation, and customer holding costs. By minimizing system operating expenses, this research determines the optimal replenishing-delivery policy. Lastly, we give a numerical example to demonstrate our study’s applicability and usefulness/capability for facilitating managerial decision-making.

This study examines the joint impact of outsourcing, overtime, multi-delivery, rework, and postponement on a multiproduct fabrication problem. A growing/clear trend in today’s customer requirements turned into rapid response and desired quality of multi-merchandises and multiple fixed-amount deliveries in equal-interval time. To satisfy customers’ expectations, current manufacturing firms must effectively design/plan their multiproduct production scheme with minimum fabrication-inventory-shipping expenses and under confined capacity. Motivated by assisting manufacturing firms in making the right production decision, this study develops a decision-support delayed-differentiation model considering multi-shipment, rework, and dual uptime-reducing strategies (namely, overtime and outsourcing). Our delayed-differentiation model comprises stage one, which makes all common/standard parts of multi-end-merchandises, and stage two, which produces multiple end merchandise. For cutting making times, the study proposes subcontracting a portion of the common/standard part’s lot size and adopting overtime-making end merchandise in stage two. The screening and reworking tasks identify and repair faulty items to ensure customers’ desired quality. The finished lots of end merchandise are divided into a few equal-amount shipments and distributed to customers in equal-interval time. We employ mathematical derivation and optimization methodology to derive the annual expected fabrication- inventory-shipping expense and the cost-minimized production-shipping policy. A numerical demonstration is presented to exhibit our research scheme’s applicability and exposes the studied problem’s critical managerial insights, which help the management make beneficial decisions.

Production management operating in recent competitive marketplaces must satisfy the client desired quality and shorter order lead-time and avoid internal fabricating disruption caused by inevitable defects and stochastic equipment failures. Achieving these operational tasks without undesirable quality goods, missing due dates, and fabrication interruption help the management minimize operating expenditures. Motivated by assisting manufacturing firms in the situations mentioned this study explores a manufacturing system that features quality reassurances through reworking or removal of defectives, correction of probabilistic failures, and partial overtime and outsourcing options for reducing uptime. This study finds the function of system operating expenditures through model building, mathematical formulations, optimization approaches, and algorithm proposition, shows its convexity, and derives the optimal batch time for the studied manufacturing model. Finally, this study offers numerical illustrations to confirm our work’s applicability and disclose its capability to provide various profound crucial system information that helps the management make strategic operating decisions.

Manufacturers today need to optimize their fabrication runtime decision by meeting short customer order due dates externally and managing the potentially unreliable machines and manufacturing processes internally. Outsourcing and overtime are commonly utilized strategies to expedite fabricating time. Additionally, detailed analyses and necessary actions on inevitable product defects (i.e., removal of scraps) and equipment breakdowns (such as machine repairing) are prerequisites to fabrication runtime planning. Motivated by assisting today’s manufacturers decide the best batch runtime plan under the situations mentioned above, this study applies mathematical modeling to a hybrid fabrication problem that incorporates partial overtime and outsourcing, inevitable product defects, and a Poisson-distributed breakdown. We develop a model to accurately represent the problem’s characteristics. Formulations and detailed model analyses allow us to find the cost function first. Differential equations and algorithms help us confirm the gain function’s convexity and find the best runtime decision. Lastly, we use numerical illustrations to show our study’s applicability by revealing in-depth crucial managerial information of the studied problem.

A hybrid batch fabrication plan involving an outsourcing option is often established to deal with the in-house capacity constraint and/or meet timely demand with a reduced cycle time. Besides, the occurrences of unpredictable equipment malfunction and imperfect product quality should also be effectively managed during in-house fabrication to meet the production schedule and the required quality level. To address these concerns, we examine a hybrid economic production quantity (EPQ) problem with an unreliable machine and quality reassurance; wherein, an outside provider helps supply a portion of the batch at a requested timing and desirable quality, but at the price of a higher than in-house unit cost. Corrective action is performed immediately when a Poisson-distributed breakdown occurs. Once the equipment repairing task completes, the interrupted lot’s fabrication resumes. Random nonconforming products are identified, and the re-workable items among them are separated from the scraps. A rework task follows the regular process in each cycle at an extra cost. A portion of reworked items fails and are scrapped. A model portraying the problem’s characteristics is built, and an optimization methodology is utilized to find the optimal runtime solution to the problem. A numerical example reveals our result’s applicability, and specific managerial implications are suggested.

Production planners today must simultaneously face with the time and quality demands of various goods externally and meet limited capacity internally. This study presents a two-stage delayed- differentiation multiproduct model that considers the outsourcing options for common parts, overtime strategy for end products, and quality reassurance to assist in making fabrication runtime decisions that are cost-effective. Stage one produces all necessary common intermediate components for end products. To reduce stage one’s utilization/uptime, this study adopts a partial outsourcing option. Stage two uses an overtime strategy to fabricate end products that further shorten the uptime. The production processes in both phases are assumed to be imperfect. This study employs the reworking/scrapping of random faulty items to reassure product quality. The researchers build a model to depict the proposed problem’s characteristics and used the mathematical modeling, analysis, and optimization approach to determine the best rotation cycle length that minimizes the system’s expenses. Further, in this study, the researchers provide sensitivity analyses and a numerical illustration, which validate the result’s applicability and exhibit its capability. This result contributes to practical multiproduct-fabrication by (1) deriving the optimal manufacturing policy for a delayed-differentiation multiproduct system with dual uptime reduction policies and quality reassurance; and (2) offering a decisional model that allows production planners to explore the collective/separate effect of a quality-ensured and dual uptime reduction strategy on a problem’s operating policy and crucial system performance indicators, which assists in cost-effective decision-making.

Variety, quality, and rapid response are becoming a trend in customer requirements in the contemporary competitive markets. Thus, an increasing number of manufacturers are frequently seeking alternatives such as redesigning their fabrication scheme and outsourcing strategy to meet the client’s expectations effectively with minimum operating costs and limited in-house capacity. Inspired by the potential benefits of delay differentiation, outsourcing, and quality assurance policies in the multi-item production planning, this study explores a single-machine two-stage multi-item batch fabrication problem considering the abovementioned features. Stage one is the fabrication of all the required common parts, and stage two is manufacturing the end products. A predetermined portion of common parts is supplied by an external contractor to reduce the uptime of stage one. Both stages have imperfect in-house production processes. The defective items produced are identified, and they are either reworked or removed to ensure the quality of the finished batch. We develop a model to depict the problem explicitly. Modeling, formulation, derivation, and optimization methods assist us in deriving a cost-minimized cycle time solution. Moreover, the proposed model can analyze and expose the diverse features of the problem to help managerial decision-making. An example of this is the individual/ collective influence of postponement, outsourcing, and quality reassurance policies on the optimal cycle time solution, utilization, uptime of each stage, total system cost, and individual cost contributors.

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.