Istrazivanja i projektovanja za privreduJournal of Applied Engineering Science


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.

View article

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

1. Chiu, S.W. (2007) Production run time problem with machine breakdowns under AR control policy and rework, Journal of Scientifi c & Industrial Research, 66, pp. 979-988.

2. Taft, E.W. (1918) The most economical production lot, Iron Age, 101, pp. 1410–1412. 3. Silver, E.A., Pyke, D.F., Peterson, R. (1998) Inventory Management and Production Planning and Scheduling, John Wiley & Sons, Inc., New York.

4. Nahmias, S. (2009) Production & Operations Analysis, McGraw-Hill Inc., New York.

5. Goyal, S.K. (1977) Integrated inventory model for a single supplier-single customer problem. International Journal of Production Research, 15, pp. 107-111.

6. Schwarz, L.B., Deuermeyer, B.L., Badinelli, R.D. (1985) Fill-rate optimization in a one-warehouse N-identical retailer distribution system, Management Science, 31, pp.488-498.

7. Banerjee, A., Banerjee, S. (1994) A coordinated order-up-to inventory control policy for a single supplier and multiple buyers using electronic data interchange. International Journal of Production Economics, 35, pp. 85-91.

8. Tyan, J., Wee, H.M. (2003) Vendor managed inventory: A survey of the Taiwanese grocery industry, Journal of Purchasing & Supply Managament, 9, pp. 11-18.

9. Sarker, R.A., Khan, L.R. (1999) Optimal batch size for a production system operating under periodic delivery policy, Computers & Industrial Engineering, 37, pp. 711-730.

10. Diponegoro, A., Sarker, B.R. (2006) Finite horizon planning for a production system with permitted shortage and fi xed-interval deliveries, Computers & Operations Research, 33, pp. 2387-2404.

11. Cheng, C-B. (2011) Reverse auction with buyer-supplier negotiation using bi-level distributed programming, European Journal of Operational Research, 211, pp. 601-611.

12. Giri, B.C., Maiti, T. (2012) Supply chain model for a deteriorating product with time-varying demand and production rate, Journal of the Operational Research Society, 63, pp. 665-673.

13. Balaji, M., Velmurugan, V., Prapa, M., Mythily, V. (2016) A fuzzy approach for modeling and design of agile supply chains using interpretive structural modeling, Jordan Journal of Mechanical and Industrial Engineering, 10(1), pp. 67-74.

14. Chiu, Y-S.P., Chiang, K-W., Chiu, S.W., Song, M-S. (2016) Simultaneous determination of production and shipment decisions for a multi-product inventory system with a rework process, Advances in Production Engineering & Management, 11(2), pp. 141-151.

15. Fergany, H.A. (2016) Probabilistic multi-item inventory model with varying mixture shortage cost under restrictions, SpringerPlus, 5(1), Art. No. 1351, pp.1- 13.

16. Qu, S., Ji, Y. (2016) The worst-case weighted multi-objective game with an application to supply chain competitions, PLoS One, 11(1), Art. No. e0147341, pp. 1-22.

17. Mičieta, B., Herčko, J., Botka, M., Zrnić, N. (2016) Concept of intelligent logistic for automotive industry, Journal of Applied Engineering Science, 14(2), pp. 233-238.

18. Henig, H., Gerchak, Y. (1990) Structure of periodic review policies in the presence of random yield, Operations Research, 38, pp. 634-643.

19. Groenevelt, H., Pintelon, L., Seidmann, A. (1992) Production lot sizing with machine breakdowns, Management Science, 38, pp. 104-123.

20. Boone, T., Ganeshan, R., Guo, Y., Ord, J.K. (2000) The impact of imperfect processes on production run times, Decision Sciences, 31, pp. 773-785.

21. Lin, G.C., Gong, D-C. (2006) On a production-inventory system of deteriorating items subject to random machine breakdowns with a fi xed repair time, Mathematical and Computer Modelling, 43, pp. 920-932.

22. Sana, S.S., Chaudhuri, K. (2010) An EMQ model in an imperfect production process, International Journal of Systems Science, 41, pp. 635-646.

23. Barlow, R.E., Proschan, F. (1965) Mathematical Theory of Reliability. Wiley, New York.

24. Shih, W., 1980. Optimal inventory policies when stock-outs result from defective products. International Journal of Production Research, 18, pp. 677-686.

25. Hariga, M., Ben-Daya, M. (1998) Note: the economic manufacturing lot-sizing problem with imperfect production processes: bounds and optimal solutions, Naval Research Logistics, 45, pp. 423-433.

26. Wee, H.M., Yu, J., Chen, M.C. (2007) Optimal inventory model for items with imperfect quality and shortage back ordering, Omega, 35, pp. 7-11.

27. Widyadana, G.A., Wee, H.M. (2012) An economic production quantity model for deteriorating items with preventive maintenance policy and random machine breakdown, International Journal of Systems Science, 43(10), pp. 1870-1882.

28. Rivera-Gómez, H., Gharbi, A., Kenné, J.P. (2013) Production and quality control policies for deteriorating manufacturing system, International Journal of Production Research, 51(11), pp. 3443-3462.

29. Chiu, S.W., Kuo, J-S., Chiu, V., Chiu, Y-S.P. (2016) Cost minimization for a multi-product fabrication-distribution problem with commonality, postponement, and quality assurance. Mathematical and Computational Applications, 21(3), Art. No. 38, pp. 1-17.

30. Dinesh, K.S., Ashwanth, A.R., Karthikeyan, S., Nithyanandam, G.K. (2016) Investigation to improve the new product development process of mono block pump using additive manufacturing, International Journal of Mechanical and Production Engineering Research and Development, 6(2), pp. 77-88.

31. Romero-Jabalquinto, A., Velasco-Téllez, A., Zambrano-Robledo, P., Bermúdez-Reyes, B. (2016) Feasibility of manufacturing combustion chambers for aeronautical use in Mexico, Journal of Applied Research and Technology, 14(3), pp. 167-172.

32. Sinaga, S., Pertiwi, L.S., Ardian, T., Zuhri. (2016) Inventory simulation optimization under non stationary demand, International Journal of Applied Engineering Research, 11(1), pp. 524- 529.

33. Zhang, D., Zhang, Y., Yu, M. (2016) A machining process oriented modeling approach for reliability optimization of failure-prone manufacturing systems, Journal of Engineering Research, 4(3), pp. 128-143.

34. Dhaiban, A.K., Baten, M.A., Aziz, N. (2017) A manufacturing- inventory control model with defective and deteriorating items, Far East Journal of Mathematical Sciences, 101(8), pp. 1691-1709.

35. 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), pp. 49-61.

36. Khanna, A., Kishore, A., Jaggi, C.K. (2017) Strategic production modeling for defective items with imperfect inspection process, rework, and sales return under two-level trade credit, International Journal of Industrial Engineering Computations, 8(1), pp. 85-118.

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

38. Oblak, L., Kuzman, M.K., Grošelj, P. (2017) A fuzzy logic-based model for analysis and evaluation of services in a Manufacturing company, Journal of Applied Engineering Science, 15(3), pp. 258-271.

39. Buckova, M., Krajcovic, M., Jerman, B. (2017) Impact of digital factory tools on designing of warehouses, Journal of Applied Engineering Science, 15 (2), pp. 173 - 180.