Models for partially processed raw materials in an assembly system

Document Type

Conference Proceeding

Publication Date

12-1-2004

Abstract

This paper presents an inventory requirement of two different types of raw materials in an assembly system. The first type requires partial processing inside the facility and then termed as processed raw materials. The other type requiring no preprocessing, termed as ready raw materials, directly arrives at the assembly line. The objective is to develop a cost model that aggregates the costs of raw materials and inventories at various stages of the assembly system. A nonlinear integer-programming model is developed to determine the optimal policies for ordering raw materials and delivering finished products, which ultimately minimize the total cost of the system. A set of closedform optimal solutions is obtained by solving the relaxed (Integer variables) original problem. A branch-and-bound algorithm is used to find integer variables, and the corresponding total cost obtained is within 99% of the optimal solution. Numerical example and sensitivity analysis are provided to demonstrate the effectiveness of the model. Future research direction is suggested for further improvement of the existing results.

Publication Source (Journal or Book title)

IIE Annual Conference and Exhibition 2004

First Page

2111

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