Abstract
For a complex product production, any flexible manufacturing system with a work-in-process inventory is recommended for a supply chain management (SCM) system. Building a flexible manufacturing system increases the total cost of the supply chain; for this reason, a discrete investment is important. For flexible production systems, production rate within a finite specific interval of production rate as work-in-process inventory is calculated. The aim of the supply chain is to reduce the total cost when demand during the lead time is a random variable with a normal distribution. A crashing cost is utilised to reduce the duration of lead time within the supply chain system. A model is proposed to obtain the optimal flexible production rate with the reduced total cost of the supply chain. A classical optimisation technique is employed to obtain the closed-form and quasi-closed-form solutions of the decision variables. An improved algorithm is designed to obtain the global minimum cost of SCM under the framework of a flexible production system. An illustrative numerical example and sensitivity analysis are given to test the model. A numerical study proves that this model obtains the minimum cost with the optimal decision variables.
Original language | English |
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Pages (from-to) | 3821-3838 |
Number of pages | 18 |
Journal | International Journal of Production Research |
Volume | 58 |
Issue number | 13 |
DOIs | |
Publication status | Published - 2020 Jul 2 |
Bibliographical note
Funding Information:This work was supported by the National Research Foundation of Korea (NRF) grant funded by the Korea government (MSIT) (NRF-2017R1C1B1008106).
Publisher Copyright:
© 2019, © 2019 Informa UK Limited, trading as Taylor & Francis Group.
All Science Journal Classification (ASJC) codes
- Strategy and Management
- Management Science and Operations Research
- Industrial and Manufacturing Engineering