Incorporating machine reliability issue and backlogging into the EMQ model - Part II: Random breakdown occurring in inventory piling time

This paper presents the second part of a research which is concerned with incorporating machine reliability issues and backlogging into the economic manufacturing quantity (EMQ) model. It may be noted that in a production system when back-ordering is permitted, a random machine failure can take place in either backorder filling stage or in on-hand inventory piling time. The first part of the research investigates the effect of a machine failure occurring in backorder filling stage on the optimal lot-size; while this paper (the second part of the research) studies the effect of random breakdown happening in inventory piling time on the optimal batch size for such an imperfect EMQ model. The objective is to determine the optimal replenishment lot-size that minimizes the overall productioninventory costs. Mathematical modelling is used and the renewal reward theorem is employed to cope with the variable cycle length. Hessian matrix equations are utilized to prove convexity of the cost function. Then, the optimal lot size for such a real-life imperfect manufacturing system is derived. Practitioners and managers in the field can adopt these replenishment policies to establish their own robust production plan accordingly

Replenishment Decision Making with Permissible Shortage, Repairable Nonconforming Products and Random Equipment Failure

Abstract: This study is concerned with replenishment decision making with repairable nonconforming products, backordering and random equipment failure during production uptime. In real world manufacturing systems, due to different factors generation of nonconforming items and unexpected machine breakdown are inevitable. Also, in certain business environments various situations between vendor and buyer, the backordering of shortage stocks sometimes is permissible with extra cost involved. This study incorporates backlogging, random breakdown and rework into a production system, with the objective of determination of the optimal replenishment lot size and optimal level of backordering that minimizes the long-run average system costs. Mathematical modeling along with the renewal reward theorem is employed for deriving system cost function. Hessian matrix equations are used to prove its convexity. Research result can be directly adopted by practitioners in the production planning and control field to assist them in making their own robust production replenishment decision

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

A bi-objective robust inspection planning model in a multi-stage serial production system

International audienceIn this paper, a bi-objective mixed-integer linear programming (BOMILP) model for planning of an inspection process used to detect nonconforming products and malfunctioning processors in a multi-stage serial production system is presented. The model involves two inter-related decisions: 1) which quality characteristics need what kind of inspections (i.e., which-what decision) and 2) when the inspection of these characteristics should be performed (i.e., when decision). These decisions require a trade-off between the cost of manufacturing (i.e., production, inspection and scrap costs) and the customer satisfaction. Due to inevitable variations in the manufacturing systems, a global robust BOMILP (RBOMILP) is developed to tackle the inherent uncertainty of the concerned parameters (i.e., production and inspection times, errors type I and II, misadjustment and dispersion of the process). In order to optimally solve the presented RBOMILP model, a meta-heuristic algorithm, namely differential evolution (DE) algorithm, is combined with the Taguchi and Monte Carlo methods. The proposed model and solution algorithm are validated through a real industrial case from a leading automotive industry in France

Developing an Agent Based Heuristic Optimisation System for Complex Flow Shops with Customer-Imposed Production Disruptions

The study of complex manufacturing flow-shops has seen a number of approaches and frameworks proposed to tackle various production-associated problems. However, unpredictable disruptions, such as change in sequence of order, order cancellation and change in production delivery due time, imposed by customers on flow-shops that impact production processes and inventory control call for a more adaptive approach capable of responding to these changes. In this research work, a new adaptive framework and agent-based heuristic optimization system was developed to investigate the disruption consequences and recovery strategy. A case study using an Original Equipment Manufacturer (OEM) production process of automotive parts and components was adopted to justify the proposed system. The results of the experiment revealed significant improvement in terms of total number of late orders, order delivery time, number of setups and resources utilization, which provide useful information for manufacturer’s decision-making policies.

Throughput and Yield Improvement for a Continuous Discrete-Product Manufacturing System

A seam-welded steel pipe manufacturing process has mainly four distinct major design and/or operational problems dealing with buffer inventory, cutting tools, pipe sizing and inspection-rework facility. The general objective of this research is to optimally solve these four important problems to improve the throughput and yield of the system at a minimum cost. The first problem of this research finds the optimal buffer capacity of steel strip coils to minimize the maintenance and downtime related costs. The total cost function for this coil feeding system is formulated as a constrained non-linear programming (NLP) problem which is solved with a search algorithm. The second problem aims at finding the optimal tool magazine reload timing, magazine size and the order quantity for the cutting tools. This tool magazine system is formulated as a mixed-integer NLP problem which is solved for minimizing the total cost. The third problem deals with different type of manufacturing defects. The profit function of this problem forms a binary integer NLP problem which involves multiple integrals with several exponential and discrete functions. An exhaustive search method is employed to find the optimum strategy for dealing with the defects and pipe sizing. The fourth problem pertains to the number of servers and floor space allocations for the off-line inspection-rework facility. The total cost function forms an integer NLP structure, which is minimized with a customized search algorithm. In order to judge the impact of the above-mentioned problems, an overall equipment effectiveness (OEE) measure, coined as monetary loss based regression (MLBR) method, is also developed as the fifth problem to assess the performance of the entire manufacturing system. Finally, a numerical simulation of the entire process is conducted to illustrate the applications of the optimum parameters setting and to evaluate the overall effectiveness of the simulated system. The successful improvement of the simulated system supports this research to be implemented in a real manufacturing setup. Different pathways shown here for improving the throughput and yield of industrial systems reflect not only to the improvement of methodologies and techniques but also to the advancement of new technology and national economy

The Demand Absorption Coefficient of a Production Line

AbstractIn this article, the demand absorption coefficient is proposed as a measure to quantify the degree of flexibility of a process against the variations of its environment in a context of robust planning. The demand absorption coefficient is defined as the slope on the function relating throughput and demand rates. This coefficient measures how demand disturbances are translated into output production rates depending on the capacity and inventory buffers of the production system. Models of serial production lines with different numbers of machines, capacities and sizes of buffers are solved by means of a decomposition method using phase-type distributions to study the behavior of this coefficient

Flow shop rescheduling under different types of disruption

This is an Accepted Manuscript of an article published by Taylor & Francis in International Journal of Production Research on 2013, available online:http://www.tandfonline.com/10.1080/00207543.2012.666856Almost all manufacturing facilities need to use production planning and scheduling systems to increase productivity and to reduce production costs. Real-life production operations are subject to a large number of unexpected disruptions that may invalidate the original schedules. In these cases, rescheduling is essential to minimise the impact on the performance of the system. In this work we consider flow shop layouts that have seldom been studied in the rescheduling literature. We generate and employ three types of disruption that interrupt the original schedules simultaneously. 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