Preliminary communication
A delayed differentiation multi-product FPR model with scrap and a multi-delivery policy – II: Using two-machine production scheme
Singa Wang Chiu
; Department of Business Administration, Chaoyang University of Technology, Wufong District, Taichung City 413, TAIWAN
You-Tsung Hsieh
; Department of Industrial Engineering & Management, Chaoyang University of Technology, Wufong District, Taichung City 413, TAIWAN
Yuan-Shyi Peter Chiu
; Department of Industrial Engineering & Management, Chaoyang University of Technology, Wufong District, Taichung City 413, TAIWAN
Ming-Hon Hwang
; Department of Marketing and Logistics Management, Chaoyang University of Technology, Wufong District, Taichung City 413, TAIWAN
Abstract
This paper concerns a delayed differentiation multi-product finite production rate (FPR) model with scrap and multi-delivery policy using a two-machine production scheme. Conventional FPR model considers a single product, single-stage production with all products fabricated being of perfect quality, and product demand satisfied by a continuous inventory issuing policy. However, in real vendor-buyer integrated systems, most vendors would adopt a multi-product production plan to maximize machine utilization. They often use a periodic or multi-shipment policy to distribute their finished products. When planning to produce a cluster of multiple products that share a common intermediate part, the vendor would often evaluate a two-stage production scheme. The first stage manufactures only the common parts for all products and the second stage separately manufactures the end products. The aim is to shorten the replenishment cycle time and reduce overall production-inventory related costs. This study considers a two-machine production scheme and the two-stage production process with the objective of determining the optimal production cycle time and number of deliveries. A numerical example with sensitivity analysis is provided to demonstrate practical use of the obtained results as well as to compare the proposed production scheme to that of using a single machine in the multi-product two-stage FPR model.
Keywords
finite production rate model; delayed product differentiation; two-stage production; two-machine production; multi-product system; common intermediate part; scrap; multi-delivery
Hrčak ID:
184900
URI
Publication date:
22.12.2016.
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