Istrazivanja i projektovanja za privreduJournal of Applied Engineering Science


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

Volume 18 article 719 pages: 505 - 509

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.

View article

1. Chiu, S.W., Liu, C-J., Li, Y-Y., Chou, C-L. (2017). Manufacturing lot size and product distribution problem with rework, outsourcing and discontinuous inventory distribution policy. International Journal for Engineering Modelling, 30(1-4), 49-61.

2. Cachon, G.P., Harker, P.T. (2002). Competition and outsourcing with scale economies. Management Science, 48(10), 1314-1333.

3. Gray, J.A., Roth, A.V., Tomlin, B. (2009). The influence of cost and quality priorities on the propensity to outsource production. Decision Sciences, 40(4), 697-726.

4. Chalos, P., Sung, J. (1998). Outsourcing decisions and managerial incentives”. Decision Sciences, 29(4), 901- 917.

5. Amaral, J., Billington, C.A., Tsay, A.A. (2006). Safeguarding the promise of production outsourcing. Interfaces, 36(3), 220-233.

6. De Fontenay, C.C., Gans, J.S. (2008). A bargaining perspective on strategic outsourcing and supply competition. Strategic Management Journal, 29(8), 819-839.

7. Harap, J. (2010). Production perspectives: 6 keys to successful outsourcing. Publishing Executive, 25(3), 1-2.

8. Balachandran, K.R., Wang, H.W., Li, S-H., Wang, T. (2013). In-house capability and supply chain decisions. Omega, 41(2), 473-484.

9. Chiu, Y-S.P., Liu, C-J., Hwang, M-H. (2017). Optimal batch size considering partial outsourcing plan and rework. Jordan Journal of Mechanical and Industrial Engineering, 11(3), 195-200.

10. Chiu, Y-S.P., Chiu, V., Lin, H-D., Chang, H-H. (2019). Meeting multiproduct demand with a hybrid inventory replenishment system featuring quality reassurance. Operations Research Perspectives, 6, Art. No.100112, 1-8.

11. Shanthikumar, J.G., Tien, C.C. (1983). Algorithmic solution to two-stage transfer lines with possible scrapping of units. Management Science, 29(7), 1069-1086.

12. Ebeling, C.E. (1991). Optimal stock levels and service channel allocations in a multi-item repairable asset inventory system”. IIE Transactions, 23(2), 115-120.

13. Calabria, R., Pulcini, G. (1999). Discontinuous point processes for the analysis of repairable units. International Journal of Reliability, Quality and Safety Engineering, 6(4), 361-382.

14. Liu, N., Kim, Y., Hwang, H. (2009). An optimal operating policy for the production system with rework. Computers and Industrial Engineering, 56(3), 874- 887.

15. Ghalme, S., Mankar, A., Bhalerao, Y. (2017). Integrated Taguchi-simulated annealing (SA) approach for analyzing wear behaviour of silicon nitride”. Journal of Applied Research and Technology, 15(6), 624- 632.

16. Vinnakoti, S., Kota, V.R. (2017). Performance analysis of unified power quality conditioner under different power quality issues using d-q based control”. Journal of Engineering Research, 5(3), 91-109.

17. Kumar, S., Goyal, A., Singhal, A. (2017). Manufacturing flexibility and its effect on system performance. Jordan Journal of Mechanical and Industrial Engineering, 11 (2), 105-112.

18. Alkhoraif, A., McLaughlin, P. (2018). Lean implementation within manufacturing SMEs in Saudi Arabia: Organizational culture aspect. Journal of King Saud University - Engineering Sciences, 30(3), 232-242.

19. Souha, B., Soufi en, G., Mtibaa, A. (2018). Using system generator to design a hardware implementation of a fault-tolerant control of induction motor for electrical vehicle. Journal of Engineering Research, 6(2), 138-154.

20. Aly, M.F., Afefy, I.H., Abdel-Magied, R.K., Elhalim, E.K.A. (2018). A comprehensive model of reliability, availability, and maintainability (RAM) for industrial systems evaluations”. Jordan Journal of Mechanical and Industrial Engineering, 12(1), 59-67.

21. Zhao, X., Qian, C., Nakamura, S., Nakagawa, T. (2018). A summary of replacement policies with number of failures. International Journal of Mathematical, Engineering and Management Sciences, 3(2), 136-150.

22. Onuchin, E., Medyakov, A., Grunin, L., & Sidorova, E. [2018]. A study of the structure of wood damaged by rot using nuclear magnetic resonance. Journal of Applied Engineering Science, 16(2), 258-262.

23. Beldar, P., Costa, A. (2018). Single machine batch processing problem with release dates to minimize total completion time. International Journal of Industrial Engineering Computations, 9(3), 331-348.

24. Gholizadeh, H., Fazlollahtabar, H. (2019). Production control process using integrated robust data envelopment analysis and fuzzy neural network. International Journal of Mathematical, Engineering and Management Sciences, 4(3), 580-590.

25. Noman, M.A., Nasr, E.S.A., Al-Shayea, A., Kaid, H. (2019). Overview of predictive condition based maintenance research using bibliometric indicators. Journal of King Saud University - Engineering Sciences, 31(4), 355-367.

26. Larkin, E. V., & Privalov, A. N. [2019]. Engineering method of fault-tolerant system simulations. Journal of Applied Engineering Science, 17(3), 295-303.

27. Arun, P., Lincon, S.A., Prabhakaran, N. (2019). An automated method for the analysis of bearing vibration based on spectrogram pattern matching. Journal of Applied Research and Technology, 17(2), 126- 136.

28. Hill, R.M. (1996). Optimizing a production system with a fi xed delivery schedule. Journal of the Operational Research Society, 47, 954-960.

29. Thomas, D.J., Griffi n, P.M. (1996). Coordinated supply chain management. European Journal of Operational Research, 94, 1-15.

30. Comeaux, E.J., Sarker, B.R. (2005). Joint optimization of process improvement investments for supplier– buyer cooperative commerce. Journal of the Operational Research Society, 56, 1310-1324.

31. Settanni, E., Harrington, T.S., Srai, J.S. (2017). Pharmaceutical supply chain models: A synthesis from a systems view of operations research. Operations Research Perspectives, 4, 74-95.

32. Ajbar, A., Ali, E. (2017). Study of advanced control of ethanol production through continuous fermentation. Journal of King Saud University - Engineering Sciences, 29(1), 1-11.

33. Acosta, I. C. G., Cano, L. A. F., Pena, O. D. L., Rivera, C. L., & Bravo, B. J. J. [2018]. Design of an inventory management system in an agricultural supply chain considering the deterioration of the product: The case of small citrus producers in a developing country. Journal of Applied Engineering Science, 16(4), 523-537.

34. Saridakis, G., Papaioannou, G., Dani, S. (2018). Introduction to the special issue on “Supply chain decision making in times of unrest, instability and change. Operations Research Perspectives, 5, 80- 81.

35. Mehdizadeh, E., Gholami, H., Naderi, B. (2018). A robust optimization model for multi-product production planning in terms of uncertainty of demand and delivery time”. Economic Computation and Economic Cybernetics Studies and Research, 52(4), 227- 240.

36. Chiu, S.W., Huang, Y-J., Chiu, Y-S.P., Chiu, T. (2019). Satisfying multiproduct demand with a FPR based inventory system featuring expedited rate and scraps. International Journal of Industrial Engineering Computations, 10(3), 443-452.

37. Grubbstrom, R.W., Erdem, A. (1999). The EOQ with backlogging derived without derivatives. International Journal of Production Economics. 59, 529-530.