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Growing Science » International Journal of Industrial Engineering Computations » A postponement model for multi-item replenishment decision considering overtime, commonality, and quality reassurance

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International Journal of Industrial Engineering Computations

ISSN 1923-2934 (Online) - ISSN 1923-2926 (Print)
Quarterly Publication
Volume 11 Issue 4 pp. 509-524 , 2020

A postponement model for multi-item replenishment decision considering overtime, commonality, and quality reassurance Pages 509-524 Right click to download the paper Download PDF

Authors: Yuan-Shyi Peter Chiu, Victoria Chiu, Yunsen Wang, Ming-Hon Hwang

DOI: 10.5267/j.ijiec.2020.6.001

Keywords: Multiproduct replenishment decision, Postponement, Overtime, Product quality reassurance, Commonality, Common cycle time

Abstract: 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.

How to cite this paper
Chiu, Y., Chiu, V., Wang, Y & Hwang, M. (2020). A postponement model for multi-item replenishment decision considering overtime, commonality, and quality reassurance.International Journal of Industrial Engineering Computations , 11(4), 509-524.

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Journal: International Journal of Industrial Engineering Computations | Year: 2020 | Volume: 11 | Issue: 4 | Views: 1775 | Reviews: 0

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