iipp publishingJournal of Applied Engineering Science

A DECISION MODEL FOR A QUALITY-ASSURED EPQ-BASED INTRA-SUPPLY CHAIN SYSTEM CONSIDERING OVERTIME OPTION


DOI 10.5937/jaes17-19827
This is an open access article distributed under the CC BY-NC-ND 4.0 terms and conditions. 
Creative Commons License

Volume 17 article 616 pages: 362 - 372

Hong-Dar Lin
Department of Industrial Engineering and Management, Chaoyang University of Technology, Taiwan
Yu-Ru Chen
Department of Industrial Engineering and Management, Chaoyang University of Technology, Taiwan
Victoria Chiu
Department of Accounting, Finance & Law, The State University of New York, Oswego      
Yuan-Shyi Peter Chiu*
Department of Industrial Engineering and Management, Chaoyang University of Technology, Taiwan



In order to gain competitive advantages, managers of present-day supply chain systems need to achieve critical operation goals, such as keeping flexible fabrication schedule, retaining product quality, maintaining timely delivery, and lowering overall operating costs. Inspired by these factors, this study developed a decision model for managers to investigate the joint impacts of quality-assured issues, overtime, and multi-shipment plan on optimal fabrication-shipment policy and on diverse system parameters of the economic production quantity (EPQ)-based supply chain system. An imperfect fabrication process producing perfect quality, repairable, and scrap items is assumed in the proposed system, along with assumptions of a flexible overtime schedule to partially expedite fabrication rate and a discontinuous multi-delivery policy for distributing end products. With a help from mathematical modeling and optimization method, the closed-form optimal fabrication-shipment policy is derived. A numerical example was employed to demonstrate applicability of our result and to expose critical managerial information of the system for supporting decision-making.

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