Effect of variable shipping frequency on production-distribution policy in a vendor-buyer integrated system

This paper investigates the effect of variable shipping frequency on production-distribution policy in a vendor-buyer integrated system. In a recent article Chiu et al. [1] derived the optimal replenishment lot size for an economic production quantity problem with multi-delivery and quality assurance, based on an assumption that the number of shipment is a given constant. However, in a vendor-buyer integrated system in supply chain environment, joint determination of replenishment lot size and number of shipments may help such a system to gain significant competitive advantage in terms of becoming a low-cost producer as well as having tight linkage to customer. For this reason, the present study extends the work of Chiu et al. [1] by considering shipping frequency as one of the decision variables and incorporating customer’s stock holding cost into system cost analysis. Hessian matrix equations are employed to certify the convexity of cost function that contains two decision variables, and the effect of variable shipping frequency on production-distribution policy is investigated. A numerical example is provided to demonstrate practical usage of the research result

Optimum Allocation of Inspection Stations in Multistage Manufacturing Processes by Using Max-Min Ant System

In multistage manufacturing processes it is common to locate inspection stations after some or all of the processing workstations. The purpose of the inspection is to reduce the total manufacturing cost, resulted from unidentified defective items being processed unnecessarily through subsequent manufacturing operations. This total cost is the sum of the costs of production, inspection and failures (during production and after shipment). Introducing inspection stations into a serial multistage manufacturing process, although constituting an additional cost, is expected to be a profitable course of action. Specifically, at some positions the associated inspection costs will be recovered from the benefits realised through the detection of defective items, before wasting additional cost by continuing to process them. In this research, a novel general cost modelling for allocating a limited number of inspection stations in serial multistage manufacturing processes is formulated. In allocation of inspection station (AOIS) problem, as the number of workstations increases, the number of inspection station allocation possibilities increases exponentially. To identify the appropriate approach for the AOIS problem, different optimisation methods are investigated. The MAX-MIN Ant System (MMAS) algorithm is proposed as a novel approach to explore AOIS in serial multistage manufacturing processes. MMAS is an ant colony optimisation algorithm that was designed originally to begin an explorative search phase and, subsequently, to make a slow transition to the intensive exploitation of the best solutions found during the search, by allowing only one ant to update the pheromone trails. Two novel heuristics information for the MMAS algorithm are created. The heuristic information for the MMAS algorithm is exploited as a novel means to guide ants to build reasonably good solutions from the very beginning of the search. To improve the performance of the MMAS algorithm, six local search methods which are well-known and suitable for the AOIS problem are used. Selecting relevant parameter values for the MMAS algorithm can have a great impact on the algorithm’s performance. As a result, a method for tuning the most influential parameter values for the MMAS algorithm is developed. The contribution of this research is, for the first time, a methodology using MMAS to solve the AOIS problem in serial multistage manufacturing processes has been developed. The methodology takes into account the constraints on inspection resources, in terms of a limited number of inspection stations. As a result, the total manufacturing cost of a product can be reduced, while maintaining the quality of the product. Four numerical experiments are conducted to assess the MMAS algorithm for the AOIS problem. The performance of the MMAS algorithm is compared with a number of other methods this includes the complete enumeration method (CEM), rule of thumb, a pure random search algorithm, particle swarm optimisation, simulated annealing and genetic algorithm. The experimental results show that the effectiveness of the MMAS algorithm lies in its considerably shorter execution time and robustness. Further, in certain conditions results obtained by the MMAS algorithm are identical to the CEM. In addition, the results show that applying local search to the MMAS algorithm has significantly improved the performance of the algorithm. Also the results demonstrate that it is essential to use heuristic information with the MMAS algorithm for the AOIS problem, in order to obtain a high quality solution. It was found that the main parameters of MMAS include the pheromone trail intensity, heuristic information and evaporation of pheromone are less sensitive within the specified range as the number of workstations is significantly increased

Optimal Configuration of Inspection and Rework Stations in a Multistage Flexible Flowline

Inspection and rework are two important issues of quality control. In this research, an N-stage flowline is considered to make decisions on these two issues. When defective items are detected at the inspection station the items are either scrapped or reworked. A reworkable item may be repaired at the regular defect-creating workstation or at a dedicated off-line rework station. Two problems (end-of-line and multistage inspections) are considered here to deal with this situation. The end-of-line inspection (ELI) problem considers an inspection station located at the end of the line while the multistage inspection (MSI) problem deals with multiple in-line inspection stations that partition the flowline into multiple flexible lines. Models for unit cost of production are developed for both problems. The ELI problem is formulated for determining the best decision among alternative policies for dealing with defective items. For an MSI problem a unit cost function is developed for determining the number and locations of in-line inspection stations along with the alternative decisions on each type of defects. Both of the problems are formulated as fractional mixed-integer nonlinear programming (f-MINLP) to minimize the unit cost of production. After several transformations the f-MINLP becomes a mixed-integer linear programming (MILP) problem. A construction heuristic, coined as Inspection Station Assignment (ISA) heuristic is developed to determine a sub-optimal location of inspection and rework stations in order to achieve minimum unit cost of production. A hybrid of Ant-Colony Optimization-based metaheuristic (ACOR) and ISA is devised to efficiently solve large instances of MSI problems. Numerical examples are presented to show the solution procedure of ELI problems with branch and bound (B&B) method. Empirical studies on a production line with large number of workstations are presented to show the quality and efficiency of the solution processes involved in both ELI and MSI problems. Computational results present that the hybrid heuristic ISA+ACOR shows better performance in terms of solution quality and efficiency. These approaches are applicable to many discrete product manufacturing systems including garments industry

A particle swarm algorithm for inspection optimization in serial multi-stage processes

AbstractImplementing efficient inspection policies is much important for the organizations to reduce quality related costs. In this paper, a particle swarm optimization (PSO) algorithm is proposed to determine the optimal inspection policy in serial multi-stage processes. The policy consists of three decision parameters to be optimized; i.e. the stages in which inspection occurs, tolerance of inspection, and size of sample to inspect. Total inspection cost is adopted as the performance measure of the algorithm. A numerical example is investigated in two phases, i.e. fixed sample size and sample size as a decision parameter, to ensure the practicality and validity of the proposed PSO algorithm. It is shown that PSO gives better results in comparison with two other algorithms proposed by earlier works

A note on ‘impacts of random scrap rate on production system in supply chain environment with a specific shipping policy’

This paper employs an alternative approach to reexamine the impacts of random scrap rate on production system in supply chain environment with a specific shipping policy. A straightforward approach in terms of a two-phase algebraic derivation is proposed in this study to replace the conventional method with the need of applying first-order and second-order differentiations to the system cost function for proof of convexity before derivation of the optimal production-shipment policy. The research result of this study is confirmed that is identical to what was obtained by Cheng et al. [1] where they used the conventional method to solve the same problem. The proposed approach is helpful for practitioners, who may not have sufficient knowledge of differential calculus to understand such an integrated production-shipment system in supply chain environment

Quantifying the Impact of Inspection Processes on Production Lines through Stochastic Discrete-Event Simulation Modeling

Inspection processes are becoming more and more popular beyond the manufacturing industry to ensure product quality. Implementing inspection systems in multistage production lines brings many benefits in productivity, quality, and customer satisfaction. However, quantifying the changes necessary to adapt the production to these systems is analytically complicated, and the tools available lack the flexibility to visualize all the inspection strategies available. This paper proposed a discrete-event simulation model that relies on probabilistic defect propagation to quantify the impact on productivity, quality, and material supply at the introduction of inspection processes in a multistage production line. The quantification follows lean manufacturing principles, providing from quite basic quantity and time elements to more comprehensive key performance indicators. The flexibility of discrete-event simulation allows for customized manufacturing and inspection topologies and variability in the tasks and inspection systems used. The model is validated in two common manufacturing scenarios, and the method to analyze the cost-effectiveness of implementing inspection processes is discussed

Developing an Integrated Quantity and Quality Approach for Improving the Performance of Multistage Manufacturing Systems

Ph.DDOCTOR OF PHILOSOPH

Application of Optimization in Production, Logistics, Inventory, Supply Chain Management and Block Chain

The evolution of industrial development since the 18th century is now experiencing the fourth industrial revolution. The effect of the development has propagated into almost every sector of the industry. From inventory to the circular economy, the effectiveness of technology has been fruitful for industry. The recent trends in research, with new ideas and methodologies, are included in this book. Several new ideas and business strategies are developed in the area of the supply chain management, logistics, optimization, and forecasting for the improvement of the economy of the society and the environment. The proposed technologies and ideas are either novel or help modify several other new ideas. Different real life problems with different dimensions are discussed in the book so that readers may connect with the recent issues in society and industry. The collection of the articles provides a glimpse into the new research trends in technology, business, and the environment

Anticipatory Batch Insertion To Mitigate Perceived Processing Risk

The literature reviewed on lot-sizing models with random yields is limited to certain random occurrences such as day to day administrative errors, minor machine repairs and random supply due to faulty delivery of parts. In reality however, the manufacturing industry faces other risks that are non random in nature. One example would be yield discrepancies caused by non random triggers such as a change in the production process, product or material. Yield uncertainties of these types are temporary in nature and usually pertain until the system stabilizes. One way of reducing the implications of such events is to have additional batches processed earlier in the production that can absorb the risk associated with the event. In this thesis, this particular approach is referred to as the anticipatory batch insertion to mitigate perceived risk. This thesis presents an exploratory study to analyze the performance of batch insertion under various scenarios. The scenarios are determined by sensitivity of products, schedule characteristics and magnitude of risks associated with causal triggers such as a process change. The results indicate that the highest return from batch insertion can be expected when there are slightly loose production schedules, high volumes of sensitive products are produced, there are high costs associated with the risks, and the risks can be predicted with some degree of certainty

Inventory control in production-inventory systems with random yield and rework: The unit-tracking approach

This paper considers a single-stage make-to-stock production–inventory system under random demand and random yield, where defective units are reworked. We examine how to set cost-minimizing production/order quantities in such imperfect systems, which is challenging because a random yield implies an uncertain arrival time of outstanding units and the possibility of them crossing each other in the pipeline. To determine the order/production quantity in each period, we extend the unit-tracking/decomposition approach, taking into account the possibility of order-crossing, which is new to the literature and relevant to other planning problems. The extended unit-tracking/decomposition approach allows us to determine the optimal base-stock level and to formulate the exact and an approximate expression of the per-period cost of a base-stock policy. The same approach is also used to develop a state-dependent ordering policy. The numerical study reveals that our state-dependent policy can reduce inventory-related costs compared to the base-stock policy by up to 6% and compared to an existing approach from the literature by up to 4.5%. From a managerial perspective, the most interesting finding is that a high mean production yield does not necessarily lead to lower expected inventory-related costs. This counterintuitive finding, which can be observed for the most commonly used yield model, is driven by an increased probability that all the units in a batch are either of good or unacceptable quality