Replenishment-shipment Decision for a Multiproduct Producer-client Coordinated FPR Model with Postponement, Rework and Subcontracting

Authors

Yuan-Shyi Peter Chiu, Chaoyang University of Technology
Ting-Fang Yan, Chaoyang University of Technology
Yunsen Wang, Montclair State UniversityFollow
Hui-Chi Wang, Chaoyang University of Technology

Document Type

Article

Publication Date

10-14-2022

Journal / Book Title

Uncertain Supply Chain Management

Abstract

This research constructs a mathematical scheme to explore replenishment-shipment decisions for a multiproduct producer-client coordinated finite production rate (FPR) model with the postponement, rework, and subcontracting plan. The considered multiple goods have a common component, and a batch FPR fabrication with postponement is planned to meet the annual multiproduct requirements. The first fabricating phase makes only the standard components needed for a batch and subcontracts a proportion of them (with additional cost) to expedite the process. In contrast, the second fabricating phase produces the finished multiple merchandise in sequence. The in-house rework processes with extra expense help retain the desirable quality. Each merchandise’s finished batch is transported to the clients in equal-sized numerous shipments. This study derives the optimal batch cycle length and transporting frequency by minimizing the overall fabricating-shipment expenses (including clients’ holding costs). This work offers a numerical example demonstrating various crucial system features influenced by the factors of subcontracting, postponement, rework, and transportation policies to facilitate managerial decision making in industries.

DOI

10.5267/j.uscm.2022.10.005

Journal ISSN / Book ISBN

2291-6830

MSU Digital Commons Citation

Chiu, Yuan-Shyi Peter; Yan, Ting-Fang; Wang, Yunsen; and Wang, Hui-Chi, "Replenishment-shipment Decision for a Multiproduct Producer-client Coordinated FPR Model with Postponement, Rework and Subcontracting" (2022). Department of Accounting and Finance Faculty Scholarship and Creative Works. 149.
https://digitalcommons.montclair.edu/acctg-finance-facpubs/149

Published Citation

Chiu, Y., Yan, T., Wang, Y & Wang, H. (2023). Replenishment-shipment decision for a multiproduct producer-client coordinated FPR model with postponement, rework and subcontracting.Uncertain Supply Chain Management, 11(1), 213-226.