Istrazivanja i projektovanja za privreduJournal of Applied Engineering Science

A TWO-PHASE SOLUTION APPROACH FOR A MANUFACTURing-DISTRIBUTION PROBLEM WITH REWORK, OUTSOURCing, AND MULTI-SHIPMENT POLICY


DOI: 10.5937/jaes0-26156 
This is an open access article distributed under the CC BY 4.0
Creative Commons License

Yuan-Shyi Peter Chiu
Chaoyang University of Technology, Department of Industrial Engineering & Management Taichung, Taiwan

Peng-Cheng Sung*
Chaoyang University of Technology, Department of Industrial Engineering & Management Taichung, Taiwan

Victoria Chiu
Finance and Law State University of New York at Oswego, Department of Accounting, New York, USA

In a recent study, a manufacturing batch-size and end-product shipment problem with outsourcing, multi-shipment, and rework was investigated using mathematical modeling and derivatives in its solution procedure. This study demonstrates that a simplified two- phase algebraic approach can also solve the problem and decide the cost-minimization policies for batch-size and end-product shipments. Our proposed straightforward solution approach enables the practitioners in the production planning and controlling filed to comprehend and efficiently solve the best replenishing batch-size and shipment policies of this real problem.

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