A multi-item batch fabrication problem featuring delayed product differentiation, outsourcing, and quality assurance
- 1 January 2021
- journal article
- research article
- Published by Growing Science in International Journal of Industrial Engineering Computations
- Vol. 12 (1), 63-78
- https://doi.org/10.5267/j.ijiec.2020.9.003
Abstract
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.Keywords
This publication has 20 references indexed in Scilit:
- Disposal versus rework – Inventory control in a production system with random yieldEuropean Journal of Operational Research, 2018
- Alternative fabrication scheme to study effects of rework of nonconforming products and delayed differentiation on a multiproduct supply-chain systemInternational Journal of Industrial Engineering Computations, 2018
- Modeling the rational behavior of individuals on an e-commerce systemOperations Research Perspectives, 2018
- A study of postponed replacement in a delay time modelReliability Engineering & System Safety, 2017
- Stochastic integrated manufacturing and remanufacturing model with shortage, rework and quality based return rate in a closed loop supply chainJournal of Cleaner Production, 2017
- Sourcing strategies of a multi-input-multi-product firmJournal of Economic Behavior & Organization, 2016
- Outsourcing decision-making: does the process matter?Production Planning & Control, 2016
- Minimizing due date related measures for a single machine scheduling problem with outsourcing allowedEuropean Journal of Operational Research, 2008
- Optimal batch sizing in a multi-stage production system with rework considerationEuropean Journal of Operational Research, 2008
- Partial outsourcing: A real options perspectiveInternational Journal of Industrial Organization, 2007