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Multiproduct Fabrication-Shipment Decision Making Incorporating an Accelerated Rate and Ensured Product Quality

Chiu Yuan-Shyi Peter, Chiu Victoria, Lin Hong-Dar, Chiu Tiffany

Management and Production Engineering Review

2021

Vol. 12, No. 2

33--44

Facing severely competitive global markets, managers of the modern transnational corporations must effectively integrate its intra-supply chain system to meet customers’ multiproduct demands with good quality items, minimum operating expenses, and in a timely delivery matter. Inspired by assisting current transnational firms to achieve the mission, this study builds a mathematical model to explore a multiproduct fabrication-shipment problem incorporating an accelerated rate and ensured product quality. A single machine production scheme under a common cycle policy and with random defects, rework, and an accelerated fabrication rate is considered. The speedy rate option is associated with extra setup and linear variable costs, which aims to cut short the common cycle time. Mathematical derivation is employed to find the long-run average system expense. The optimization method is used to jointly derive the decision for common length and delivery frequency per cycle for the problem. Numerical illustration is offered to confirm the applicability of the results and expose the individual/combined influences of diverse crucial system features on the problem, thus facilitate the intra-supply chain’s fabrication-shipment decision making.