Abstract
A production-delivery system in a supply chain is always expected to reduce its overall production and management cost. In this research, a decision-making model is developed for optimal production rate selection in a single-stage supply chain system with volume flexibility, where raw materials and/or components are procured from suppliers and processed into finished products which are delivered to customers periodically at a fixed quantity with a fixed interval of time. In this model, production rate is perceived as a decision variable and unit production cost becomes a function of production rate. A pragmatic computational approach is presented to solve the proposed model for special unit production cost functions. Finally, a numerical study is conducted to illustrate the optimal solution and computational approach.
This is a preview of subscription content, log in via an institution.
Buying options
Tax calculation will be finalised at checkout
Purchases are for personal use only
Learn about institutional subscriptionsPreview
Unable to display preview. Download preview PDF.
References
Feng, D.Z., Yamashiro, M.: A Pragmatic Approach for Optimal Selection of Plant-specific Process Plans in a Virtual Enterprise. Production Planning & Control 14, 562–570 (2003)
Hax, A.C., Candea, D.: Production and Inventory Management. Prentice-Hall, Englewood Cliffs (1984)
Pan, A.C., Liao, C.J.: An Inventory Model under Just-in-time Purchasing Agreements. Production and Inventory Management 30(1), 49–52 (1989)
Ramasesh, R.V.: Recasting the Traditional Inventory Model to Implement Just-in-time Purchasing. Production and Inventory Management 31(1), 71–75 (1990)
Sarker, B.R., Parija, G.R.: An Optimal Batch Size for a Production System Operating under a Fixed-Quantity, Periodic Delivery Policy. J. Operational Res. Society 45(8), 891–900 (1994)
Cachon, G.P., Zipkin, P.H.: Competitive and Cooperative Inventory Policies in a Twostage Supply Chain. Management Science 45(7), 936–953 (1999)
Cheng, T.C.E.: An Economic Order Quantity Model with Demand-Dependent Unit Production Cost and Imperfect Production Processes. IIE Transactions 23(1), 23–28 (1991)
Sarker, B.R., Parija, G.R.: Optimal Batch Size and Raw Material Ordering Policy for a Production System with a Fixed-interval, Lumpy Demand Delivery System. European Journal of Operational Research 89, 593–608 (1996)
Schweitzer, P.J., Seidmann, A.: Optimizing Processing Rates for Flexible Manufacturing Systems. Management Science 37, 454–466 (1991)
Sethi, A.K., Sethi, P.S.: Flexibility in Manufacturing: a Survey. International Journal of Flexible Manufacturing Systems 2, 289–328 (1990)
Ramasesh, R.V., Jayakumar, M.D.: Measurement of Manufacturing Flexibility. Journal of Operations Management 10(4), 446–467 (1991)
Khouja, M.: The Economic Production Lot Size Model under Volume Flexibility. Computer & Operations Research 22, 515–523 (1995)
Feng, D.Z., Yamashiro, M.: Optimal Production Policy for a Manufacturing System with Volume Flexibility in a Supply Chain under Lumpy Demand. International Journal of Advanced Manufacturing Technology 25, 777–784 (2005)
Petropoulos, P.G.: Optimal Selection of Machining Rate Variables by Geometric Programming. International Journal of Production Research 11, 305–314 (1973)
Author information
Authors and Affiliations
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2005 Springer-Verlag Berlin Heidelberg
About this paper
Cite this paper
Feng, Dz., Zhang, Lb. (2005). Optimal Production Policy for a Volume-Flexibility Supply-Chain System. In: Huang, DS., Zhang, XP., Huang, GB. (eds) Advances in Intelligent Computing. ICIC 2005. Lecture Notes in Computer Science, vol 3645. Springer, Berlin, Heidelberg. https://doi.org/10.1007/11538356_93
Download citation
DOI: https://doi.org/10.1007/11538356_93
Publisher Name: Springer, Berlin, Heidelberg
Print ISBN: 978-3-540-28227-3
Online ISBN: 978-3-540-31907-8
eBook Packages: Computer ScienceComputer Science (R0)