An improved production plan to minimize machine idle time

Document Type

Conference Proceeding

Publication Date

12-1-2006

Abstract

A supply chain system of a Just-in-time production facility consists of raw material suppliers, manufacturers and retailers where inventory of raw materials, work-in-processes and finished goods are involved, respectively. This research focuses on reducing the idle time of the production facilities by assuming that the production of succeeding cycle starts immediately after the production of preceding cycle. In reality, the inventory of a supply chain system may not be completely empty. A number of finished products may be leftover after the deliveries are made. These leftover inventories are added to the next shipment after the production of required amount to makeup a complete batch for shipment. Large industries start their production before the finished product inventories fall to zero. Therefore, it is extremely important to search for optimal strategies for these types production facilities where leftover finished goods inventory remains after the final shipment in a production cycle. Considering these scenarios, an inventory model is developed for an imperfect matching condition where some finished goods remain after the shipments. Solution methodologies are suggested to solve the non-linear integer programming model to evaluate the optimum number of orders and shipments which leads to the minimization of the total system cost.

Publication Source (Journal or Book title)

2006 IIE Annual Conference and Exhibition

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