A TWO-PHASE SOLUTION APPROACH FOR A MANUFACTURING-DISTRIBUTION PROBLEM WITH REWORK, OUTSOURCING, AND MULTI-SHIPMENT POLICY

  • Yuan-Shyi Peter Chiu Chaoyang University of Technology, Department of Industrial Engineering & Management, Taichung, Taiwan
  • Peng-Cheng Sung Chaoyang University of Technology, Department of Industrial Engineering & Management, Taichung, Taiwan https://orcid.org/0000-0002-8892-1685
  • Victoria Chiu Finance and Law State University of New York at Oswego, Department of Accounting, New York, USA
Keywords: Production management, outsourcing, manufacturing-distribution problem, rework, two-phase solution approach

Abstract


A manufacturing batch-size and end-product shipment problem with outsourcing, multi- shipment, and rework was investigated in a recent article [1] using the mathematical modeling and derivatives in their solution procedure. The present work employs an alternative method namely, a two-phase algebraic approach to resolve the problem in [1] and determine the optimal manufacturing batch-size and end-product shipment policies that keep total system cost at minimum. Such a straightforward solution process enables the practitioners in production planning and controlling filed, who may have inadequate knowledge of the differential calculus, to comprehend and easily solve the best replenishing batch-size and shipment policies of this realistic problem.

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Published
2020/10/26
Section
Original Scientific Paper