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Growing Science » International Journal of Industrial Engineering Computations » Optimization of a hybrid multi-item fabricating-shipping integrated system considering scrap, adjustable-rate, and postponement

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International Journal of Industrial Engineering Computations

ISSN 1923-2934 (Online) - ISSN 1923-2926 (Print)
Quarterly Publication
Volume 15 Issue 1 pp. 89-104 , 2024

Optimization of a hybrid multi-item fabricating-shipping integrated system considering scrap, adjustable-rate, and postponement Pages 89-104 Right click to download the paper Download PDF

Authors: Yuan-Shyi P. Chiu, Ya-Lei Lo, Fan-Yun Pai, Victoria Chiu, Singa Wang Chiu

DOI: 10.5267/j.ijiec.2023.11.002

Keywords: Fabricating-shipping system, Hybrid multi-item batch system, Adjustable rate, Postponement, Scrap, Multiple shipments, Subcontracting

Abstract: 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.

How to cite this paper
Chiu, Y., Lo, Y., Pai, F., Chiu, V & Chiu, S. (2024). Optimization of a hybrid multi-item fabricating-shipping integrated system considering scrap, adjustable-rate, and postponement.International Journal of Industrial Engineering Computations , 15(1), 89-104.

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Journal: International Journal of Industrial Engineering Computations | Year: 2024 | Volume: 15 | Issue: 1 | Views: 862 | Reviews: 0

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