Istrazivanja i projektovanja za privreduJournal of Applied Engineering Science


DOI: 10.5937/jaes0-31313 
This is an open access article distributed under the CC BY 4.0
Creative Commons License

Volume 20 article 922 pages: 212-220

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

Yi-Ying Li
Chaoyang University of Technology, Department of Industrial Engineering & Management, Taichung, Taiwan

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

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

To stay competitive in turbulent business environments, manufacturing firms’ managers today constantly seek ways to reduce order response time, smooth production schedules, ensure the quality of their products, and lower overall making and shipping costs. This study incorporates an outsourcing strategy and in-house quality assurance into a production-shipment problem to address the aforementioned operational goals. The objectives are to simultaneously find the optimal fabrication batch size and frequency of delivery that minimize the system’s relevant costs and reveal in-depth information regarding the impact of diverse system parameters on the optimal policy and system cost. This study develops a model and uses the optimization method to resolve the problem. The research results facilitate managerial decisions in such a real-life situation.

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The authors thank the Ministry of Science and Technology of Taiwan for its kind support to this study under contract number: MOST-104-2410-H-324-008-MY2.

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