Istrazivanja i projektovanja za privreduJournal of Applied Engineering Science

OPTIMIZATION OF AN INTRA-SUPPLY CHAIN SYSTEM WITH UNRELIABLE PRODUCTION FACILITY


DOI:10.5937/jaes16-16399
This is an open access article distributed under the CC BY-NC-ND 4.0 terms and conditions. 
Creative Commons License

Volume 16 article 518 pages: 192 - 201

Singa Wang Chiu
Department of Business Administration, Chaoyang University of Technology, Taiwan

Hsin-Mei Chen
Department of Industrial Engineering & Management, Chaoyang University of Technology, Taiwan

Hong-Dar Lin
Department of Industrial Engineering & Management, Chaoyang University of Technology, Taiwan

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

Optimization of a manufacturer-retailer integrated type of intra-supply chain system considering unreliable production facility is explored in this study. It is assumed that a producer of consumer goods has its own sales offices, and during the fabrication process, both equipment breakdown and production of nonconforming goods seem inevitable. To explicitly address such a real intra-supply chain problem, we incorporate end products transportation cost and sales office’s stock holding cost into a prior study (Chiu [01]) with the objective of deriving the optimal fabrication runtime. Solution to the problem is obtained through the use of mathematical modeling, optimization techniques, and a proposed recursive algorithm. Applicability of research result and sensitivity analyses are demonstrated thru numerical example.

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Authors deeply thank the Ministry of Science and Technology of Taiwan for sponsor of this study (under grant no. MOST102-2410-H-324-005).

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