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This study explores the multiproduct manufacturer-retailer coordination replenishing decision featuring outsourcing strategy and product quality assurance. Globalization has generated enormous opportunities. Consequently, transnational firms now face tough competition in global markets. To stay competitive, a firm should meet the client’s multi-item and quality requirements under capacity constraints and optimize the intra-supply chain system to allow the timely distribution of finished goods under minimum system cost. The outsourcing option is considered to release machine loadings and reduce cycle time effectively. All items fabricated are screened for quality, and reworkable and scrap items are separated. Any reworked items that fail the quality reassurance screening are discarded, whereas all outsourced products are quality-guaranteed by the provider. A fixed-quantity multi-shipment plan is used when the whole finished lot is quality-ensured to help present-day transnational firms gain competitive advantage by making efficient and cost-effective multiproduct manufacturing and delivering decisions. Mathematical modeling is built to portray the system’s characteristics, and conventional differential calculus is used to solve and derive the optimal operating policy for the proposed problem. Simultaneously, we find the optimal delivery frequency and common cycle time for the problem mentioned above. A simulated numerical example and sensitivity analysis demonstrate the research result’s capability and applicability. Our precise analytical model can reveal/highlight the impact of deviations in quality- and outsourcing-related features on the optimal operating policy and several performance indicators that help managerial decision-making.
Yuan-Shyi Peter Chiu; Victoria Chiu; Tsu-Ming Yeh; Hua-Yao Wu. Incorporating Outsourcing Strategy and Quality Assurance into a Multiproduct Manufacturer–Retailer Coordination Replenishing Decision. Mathematics 2020, 8, 2212 .
AMA StyleYuan-Shyi Peter Chiu, Victoria Chiu, Tsu-Ming Yeh, Hua-Yao Wu. Incorporating Outsourcing Strategy and Quality Assurance into a Multiproduct Manufacturer–Retailer Coordination Replenishing Decision. Mathematics. 2020; 8 (12):2212.
Chicago/Turabian StyleYuan-Shyi Peter Chiu; Victoria Chiu; Tsu-Ming Yeh; Hua-Yao Wu. 2020. "Incorporating Outsourcing Strategy and Quality Assurance into a Multiproduct Manufacturer–Retailer Coordination Replenishing Decision." Mathematics 8, no. 12: 2212.
To stay competitive in present-day turbulent business environment, managers of manufacturing firms must achieve crucial operational goals, such as maintaining product quality, reducing operating costs, and attaining customer satisfaction. In real manufacturing systems, allowing backordering sometimes can be an effective strategy to help smooth manufacturing schedules and lower operating costs. However, the consequence of excessive shortages is the undesirable service level which reduces customer satisfaction and goodwill. To cope with this unwanted result, a maximal permitted backlogging level is set as an operating constraint to achieve the minimum required service level. Also, production of scrap items and stochastic breakdown are both inevitable in the manufacturing processes. Motivated by addressing aforementioned issues and providing insight information to managers for supporting their operational decision makings, this paper investigates the optimal runtime for a fabrication system with backordering, service level constraint, stochastic breakdown, and scrap. Mathematical model was developed and optimization methods are used to decide the optimal runtime that minimizes total system costs. Various key insights relating to joint impacts of backlogging, service level, stochastic breakdown, and scrap on the optimal runtime decision are revealed through a numerical illustration along with sensitivity analyses.
Singa Wang Chiu; Gang-Ming Liang; Yuan-Shyi Peter Chiu; Tiffany Chiu. Production planning incorporating issues of reliability and backlogging with service level constraint. Operations Research Perspectives 2018, 6, 100090 .
AMA StyleSinga Wang Chiu, Gang-Ming Liang, Yuan-Shyi Peter Chiu, Tiffany Chiu. Production planning incorporating issues of reliability and backlogging with service level constraint. Operations Research Perspectives. 2018; 6 ():100090.
Chicago/Turabian StyleSinga Wang Chiu; Gang-Ming Liang; Yuan-Shyi Peter Chiu; Tiffany Chiu. 2018. "Production planning incorporating issues of reliability and backlogging with service level constraint." Operations Research Perspectives 6, no. : 100090.
Operating in unstable and competitive globalized markets, management of today’s transnational enterprises continually searches for different alternatives to maintain product quality, streamline production activities, and reduce overall operating costs, particularly in their internal supply chain system. With the aim of revealing and offering insight information to support managerial decision making, this study explores the optimal replenishment lot-size and shipping frequency problem for an intra-supply chain system with a partial outsourcing policy and random scrap. In this study, the demand of a product is partially outsourced and partially fabricated by the production units, to release the workload of machine and smooth production schedule. During the fabrication process, a portion of random scrap items is produced, and finished products are distributed to sales locations using a multiple-shipment policy. The objective is to simultaneously determine an optimal fabrication lot-size and shipping frequency decisions that minimize the overall expected costs for such an intra-supply chain system. Mathematical modeling and optimization methods are used to solve the problem. Moreover, through the use of a numerical example and sensitivity analyses, various important insights with regard to the joint effects of the partial outsourcing policy and random scrap on the optimal solutions are revealed to support managerial decision making.
Yuan-Shyi Peter Chiu; Gang-Ming Liang; Singa Wang Chiu. Solving a Fabrication Lot-Size and Shipping Frequency Problem with an Outsourcing Policy and Random Scrap. Mathematical and Computational Applications 2016, 21, 45 .
AMA StyleYuan-Shyi Peter Chiu, Gang-Ming Liang, Singa Wang Chiu. Solving a Fabrication Lot-Size and Shipping Frequency Problem with an Outsourcing Policy and Random Scrap. Mathematical and Computational Applications. 2016; 21 (4):45.
Chicago/Turabian StyleYuan-Shyi Peter Chiu; Gang-Ming Liang; Singa Wang Chiu. 2016. "Solving a Fabrication Lot-Size and Shipping Frequency Problem with an Outsourcing Policy and Random Scrap." Mathematical and Computational Applications 21, no. 4: 45.
To gain more competitive advantages and attract more customers from the turbulent business environment, manufacturing firms today must offer a wide variety of products to marketplaces. The existence of component commonality in multi-product fabrication planning enables managers to reevaluate different production design alternatives to lower overall production relevant costs. Motivated by assisting managers of manufacturing firms in gaining competitive advantages, maximizing machine utilization, and reducing overall quality and fabrication-distribution costs, this study explores a multi-product fabrication-distribution problem with component commonality, postponement, and quality assurance. A two-stage single-machine production scheme with the reworking of repairable nonconforming items is proposed. The first stage fabricates common intermediate components for all products, and the second stage produces and distributes end products under a common cycle time policy. Mathematical modeling and optimization techniques are utilized to derive the optimal fabrication-distribution policy that minimizes the expected total system costs of the problem. Finally, we provide a numerical example with sensitivity analyses to not only show practical uses of the obtained results, but also demonstrate that the proposed production scheme is beneficial in terms of cost savings and cycle time reduction as compared to that in a single-stage production scheme. The research results enable manufacturers to gain more competitive advantages in the turbulent global business environment.
Singa Wang Chiu; Jyun-Sian Kuo; Victoria Chiu; Yuan-Shyi Peter Chiu. Cost Minimization for a Multi-Product Fabrication-Distribution Problem with Commonality, Postponement, and Quality Assurance. Mathematical and Computational Applications 2016, 21, 38 .
AMA StyleSinga Wang Chiu, Jyun-Sian Kuo, Victoria Chiu, Yuan-Shyi Peter Chiu. Cost Minimization for a Multi-Product Fabrication-Distribution Problem with Commonality, Postponement, and Quality Assurance. Mathematical and Computational Applications. 2016; 21 (3):38.
Chicago/Turabian StyleSinga Wang Chiu; Jyun-Sian Kuo; Victoria Chiu; Yuan-Shyi Peter Chiu. 2016. "Cost Minimization for a Multi-Product Fabrication-Distribution Problem with Commonality, Postponement, and Quality Assurance." Mathematical and Computational Applications 21, no. 3: 38.
A multi-customer finite production rate (FPR) model with quality assurance and discontinuous delivery policy was investigated in a recent paper (Chiu et al. in J Appl Res Technol 12(1):5–13, 2014) using differential calculus approach. This study employs mathematical modeling along with a two-phase algebraic method to resolve such a specific multi-customer FPR model. As a result, the optimal replenishment lot size and number of shipments can be derived without using the differential calculus. Such a straightforward method may assist practitioners who with insufficient knowledge of calculus in learning and managing the real multi-customer FPR systems more effectively.
Yuan-Shyi Peter Chiu; Chung-Li Chou; Huei-Hsin Chang; Singa Wang Chiu. Solving multi-customer FPR model with quality assurance and discontinuous deliveries using a two-phase algebraic approach. SpringerPlus 2016, 5, 493 .
AMA StyleYuan-Shyi Peter Chiu, Chung-Li Chou, Huei-Hsin Chang, Singa Wang Chiu. Solving multi-customer FPR model with quality assurance and discontinuous deliveries using a two-phase algebraic approach. SpringerPlus. 2016; 5 (1):493.
Chicago/Turabian StyleYuan-Shyi Peter Chiu; Chung-Li Chou; Huei-Hsin Chang; Singa Wang Chiu. 2016. "Solving multi-customer FPR model with quality assurance and discontinuous deliveries using a two-phase algebraic approach." SpringerPlus 5, no. 1: 493.
This study develops two extended economic manufacturing quantity (EMQ)-based models with a discontinuous product issuing policy, random machine breakdown, and rework failures. Various real conditions in production processes, end-product delivery, and intra-supply chains such as a producer–retailer integrated scheme are examined. The first model incorporates a discontinuous multi-delivery policy into a prior work (Chiu et al. in Proc Inst Mech Eng B J Eng 223:183–194, 2009) in lieu of their continuous policy. Such an enhanced model can address situations in supply chain environments, where finished products are transported to outside retail stores (or customers). The second model further combines retailer’s stock holding costs into the first model. This extended EMQ model is applicable in situations in present-day manufacturing firms where finished products are distributed to company’s own retail stores (or regional sales offices) and stocked there for sale. Two aforementioned extended EMQ models are investigated, respectively. Mathematical modeling along with iterative algorithms are employed to derive the optimal production run times that minimize the expected total system costs, including the costs incurred in production units, transportation, and retail stores, for these integrated EMQ systems. Numerical examples are provided to demonstrate the practical application of the research results.
Singa Wang Chiu; Shin-Wei Chen; Yuan-Shyi Peter Chiu; Ting-Wei Li. Producer–retailer integrated EMQ system with machine breakdown, rework failures, and a discontinuous inventory issuing policy. SpringerPlus 2016, 5, 339 .
AMA StyleSinga Wang Chiu, Shin-Wei Chen, Yuan-Shyi Peter Chiu, Ting-Wei Li. Producer–retailer integrated EMQ system with machine breakdown, rework failures, and a discontinuous inventory issuing policy. SpringerPlus. 2016; 5 (1):339.
Chicago/Turabian StyleSinga Wang Chiu; Shin-Wei Chen; Yuan-Shyi Peter Chiu; Ting-Wei Li. 2016. "Producer–retailer integrated EMQ system with machine breakdown, rework failures, and a discontinuous inventory issuing policy." SpringerPlus 5, no. 1: 339.
This study uses mathematical modeling to examine a multi-product economic manufacturing quantity (EMQ) model with an enhanced end items issuing policy and rework failures. We assume that a multi-product EMQ model randomly generates nonconforming items. All of the defective are reworked, but a certain portion fails and becomes scraps. When rework process ends and the entire lot of each product is quality assured, a cost reduction n + 1 end items issuing policy is used to transport finished items of each product. As a result, a closed-form optimal production cycle time is obtained. A numerical example demonstrates the practical usage of our result and confirms a significant savings in stock holding and overall production costs as compared to that of a prior work (Chiu et al. in J Sci Ind Res India, 72:435-440 2013) in the literature.
Yuan-Shyi Peter Chiu; Peng-Cheng Sung; Singa Wang Chiu; Chung-Li Chou. Mathematical modeling of a multi-product EMQ model with an enhanced end items issuing policy and failures in rework. SpringerPlus 2015, 4, 679 .
AMA StyleYuan-Shyi Peter Chiu, Peng-Cheng Sung, Singa Wang Chiu, Chung-Li Chou. Mathematical modeling of a multi-product EMQ model with an enhanced end items issuing policy and failures in rework. SpringerPlus. 2015; 4 (1):679.
Chicago/Turabian StyleYuan-Shyi Peter Chiu; Peng-Cheng Sung; Singa Wang Chiu; Chung-Li Chou. 2015. "Mathematical modeling of a multi-product EMQ model with an enhanced end items issuing policy and failures in rework." SpringerPlus 4, no. 1: 679.
This paper considers optimization of a multi-product economic production quantity (EPQ) model with scrap items and an improved multi-delivery policy. We extend the work of Chiu et al. (2013a) by incorporating an improved n + 1 multi-delivery plan into their model with an aim at reducing vendor’s inventory holding cost. Under such a specific shipment policy, for each product an extra delivery of finished goods is made during production uptime to satisfy the product demand for the period of vendor’s uptime. Then, when rework process comes to an end (i.e., the rest of the production lot is quality assured) n fixed quantity installments of finished goods are delivered to buyers at a fixed time interval. The objectives of this study are to determine the optimal rotation production cycle time that minimizes the long-run average system cost per unit time and reveals the effects of random scrap rate and the improved delivery policy on the optimal production cycle time. With the help of a mathematical model a closedform optimal common cycle time is derived. Through a numerical example, practical usages of obtained results and significant savings in vendor’s stock holding cost are demonstrated.
Mei-Fang Wu; Yuan-Shyi Peter Chiu; Peng-Cheng Sung. Optimization of a multi-product EPQ model with scrap and an improved multi-delivery policy. Journal of Engineering Research 2014, 2, 1 -16.
AMA StyleMei-Fang Wu, Yuan-Shyi Peter Chiu, Peng-Cheng Sung. Optimization of a multi-product EPQ model with scrap and an improved multi-delivery policy. Journal of Engineering Research. 2014; 2 (4):1-16.
Chicago/Turabian StyleMei-Fang Wu; Yuan-Shyi Peter Chiu; Peng-Cheng Sung. 2014. "Optimization of a multi-product EPQ model with scrap and an improved multi-delivery policy." Journal of Engineering Research 2, no. 4: 1-16.
Yuan-Shyi Peter Chiu; Huei-Hsin Chang. Optimal run time for EPQ model with scrap, rework and stochastic breakdowns: A note. Economic Modelling 2014, 37, 143 -148.
AMA StyleYuan-Shyi Peter Chiu, Huei-Hsin Chang. Optimal run time for EPQ model with scrap, rework and stochastic breakdowns: A note. Economic Modelling. 2014; 37 ():143-148.
Chicago/Turabian StyleYuan-Shyi Peter Chiu; Huei-Hsin Chang. 2014. "Optimal run time for EPQ model with scrap, rework and stochastic breakdowns: A note." Economic Modelling 37, no. : 143-148.
Yuan-Shyi Peter Chiu; Chao-Chih Huang; Mei-Fang Wu; Huei-Hsin Chang. Joint determination of rotation cycle time and number of shipments for a multi-item EPQ model with random defective rate. Economic Modelling 2013, 35, 112 -117.
AMA StyleYuan-Shyi Peter Chiu, Chao-Chih Huang, Mei-Fang Wu, Huei-Hsin Chang. Joint determination of rotation cycle time and number of shipments for a multi-item EPQ model with random defective rate. Economic Modelling. 2013; 35 ():112-117.
Chicago/Turabian StyleYuan-Shyi Peter Chiu; Chao-Chih Huang; Mei-Fang Wu; Huei-Hsin Chang. 2013. "Joint determination of rotation cycle time and number of shipments for a multi-item EPQ model with random defective rate." Economic Modelling 35, no. : 112-117.
This paper uses mathematical modeling to determine optimal inventory replenishment policy for the economic manufacturing quantity (EMQ) with rework and multiple shipments. The classic EMQ model considers a continuous inventory issuing policy for satisfying customer’s demands. It also assumes that all products produced are of perfect quality. However, in a real world vendor-buyer integrated environment, multi-shipment policy is practically used in lieu of the continuous issuing approach and generation of random defective items is inevitable. In this study, we assume the reworking of all defective items takes place when the regular production process ends in each cycle. Failure in repair exists; a portion of reworked items fails during the reworking and becomes scrap. The finished items can only be delivered to customers if the whole lot is quality assured at the end of rework. Fixed quantity multiple installments of the finished batch are delivered to customers at a fixed interval of time. Mathematical modeling and analysis are employed in this study for solving such a realistic EMQ model. The long-run average cost function is derived, its convexity is proved, and a closed-form optimal manufacturing lot size is obtained. Two special cases to the proposed model are examined.
Yuan-Shyi Peter Chiu; Shang-Chih Liu; Chun-Lin Chiu; Huei-Hsin Chang. Mathematical modeling for determining the replenishment policy for EMQ model with rework and multiple shipments. Mathematical and Computer Modelling 2011, 54, 2165 -2174.
AMA StyleYuan-Shyi Peter Chiu, Shang-Chih Liu, Chun-Lin Chiu, Huei-Hsin Chang. Mathematical modeling for determining the replenishment policy for EMQ model with rework and multiple shipments. Mathematical and Computer Modelling. 2011; 54 (9-10):2165-2174.
Chicago/Turabian StyleYuan-Shyi Peter Chiu; Shang-Chih Liu; Chun-Lin Chiu; Huei-Hsin Chang. 2011. "Mathematical modeling for determining the replenishment policy for EMQ model with rework and multiple shipments." Mathematical and Computer Modelling 54, no. 9-10: 2165-2174.
This paper examines impacts of random scrap rate on production system in supply chain environment with a specific n+1 distribution policy. The purpose of introducing such a specific shipping policy is to cut down inventory holding costs for both producer and customer in vendor-buyer supply chain environment. Mathematical modeling along with Hessian matrix equations is used to simultaneously determine the optimal policies for production lot-size as well as number of shipments first. Then impacts of random scrap rate on the proposed system are analyzed. Numerical example is provided to show its practical usage and to demonstrate impacts of scrap rate on the system. Key words: Imperfect production system, random scrap rate, replenishment lot size.
Cheng Feng Tsung; Chen Kuang Ku; Peter Chiu Yuan Shyi; Chang Huei Hsin; Feng-Tsung Cheng; Kuang-Ku Chen; Yuan-Shyi Peter Chiu; Huei-Hsin Chang. Impacts of random scrap rate on production system in supply chain environment with a specific shipping policy. Scientific Research and Essays 2011, 6, 3498 -3503.
AMA StyleCheng Feng Tsung, Chen Kuang Ku, Peter Chiu Yuan Shyi, Chang Huei Hsin, Feng-Tsung Cheng, Kuang-Ku Chen, Yuan-Shyi Peter Chiu, Huei-Hsin Chang. Impacts of random scrap rate on production system in supply chain environment with a specific shipping policy. Scientific Research and Essays. 2011; 6 (16):3498-3503.
Chicago/Turabian StyleCheng Feng Tsung; Chen Kuang Ku; Peter Chiu Yuan Shyi; Chang Huei Hsin; Feng-Tsung Cheng; Kuang-Ku Chen; Yuan-Shyi Peter Chiu; Huei-Hsin Chang. 2011. "Impacts of random scrap rate on production system in supply chain environment with a specific shipping policy." Scientific Research and Essays 6, no. 16: 3498-3503.
This paper is concerned with determination of optimal lot size for an economic production quantity model with scrap and random breakdown occurring in backorder replenishing period. In most real-life manufacturing systems, generation of defective items and random breakdown of production equipment are inevitable. To deal with the stochastic machine failures, production planners practically calculate the mean time between failures (MTBF) and establish the robust plan accordingly, in terms of optimal lot size that minimizes total production-inventory costs for such an unreliable system. Random scrap rate is considered in this study, and breakdown is assumed to occur in the backorder filling period. Mathematical modeling and analysis is used and the renewal reward theorem is employed to cope with the variable cycle length. An optimal manufacturing lot size that minimizes the long-run average costs for such an imperfect system is derived. Numerical example is provided to demonstrate its practical usages.
Chia-Kuan Ting; Yuan-Shyi Peter Chiu; Chu-Chai Henry Chan. Optimal Lot Sizing with Scrap and Random Breakdown Occurring in Backorder Replenishing Period. Mathematical and Computational Applications 2011, 16, 329 -339.
AMA StyleChia-Kuan Ting, Yuan-Shyi Peter Chiu, Chu-Chai Henry Chan. Optimal Lot Sizing with Scrap and Random Breakdown Occurring in Backorder Replenishing Period. Mathematical and Computational Applications. 2011; 16 (2):329-339.
Chicago/Turabian StyleChia-Kuan Ting; Yuan-Shyi Peter Chiu; Chu-Chai Henry Chan. 2011. "Optimal Lot Sizing with Scrap and Random Breakdown Occurring in Backorder Replenishing Period." Mathematical and Computational Applications 16, no. 2: 329-339.
Yuan-Shyi Peter Chiu; Hong-Dar Lin; Huei-Hsin Chang. Mathematical modeling for solving manufacturing run time problem with defective rate and random machine breakdown. Computers & Industrial Engineering 2011, 60, 576 -584.
AMA StyleYuan-Shyi Peter Chiu, Hong-Dar Lin, Huei-Hsin Chang. Mathematical modeling for solving manufacturing run time problem with defective rate and random machine breakdown. Computers & Industrial Engineering. 2011; 60 (4):576-584.
Chicago/Turabian StyleYuan-Shyi Peter Chiu; Hong-Dar Lin; Huei-Hsin Chang. 2011. "Mathematical modeling for solving manufacturing run time problem with defective rate and random machine breakdown." Computers & Industrial Engineering 60, no. 4: 576-584.
The classic economic production quantity (EPQ) model assumes a continuous inventory-issuing policy for satisfying product demand and a perfect production for all items produced. However, in a real-life vendor–buyer integrated system, a multi-delivery policy is often used in lieu of continuous issuing policy and it is inevitable to generate defective items during a production run. This study addresses these issues by incorporating multiple deliveries of the finished batch, customer's inventory-holding cost and manufacturer's quality assurance cost into an EPQ model with the imperfect reworking of random defective items. Mathematical modelling and analyses are employed. Convexity of the long-run expected cost function is proved by the use of Hessian matrix equations, and the closed-form solutions in terms of the optimal lot size and optimal number of deliveries are obtained. The research results are demonstrated with a numerical example with a discussion on its practical usage.
Yuan-Shyi Peter Chiu; Chih-An Katherine Lin; Huei-Hsin Chang; Victoria Chiu. Mathematical modelling for determining economic batch size and optimal number of deliveries for EPQ model with quality assurance. Mathematical and Computer Modelling of Dynamical Systems 2010, 16, 373 -388.
AMA StyleYuan-Shyi Peter Chiu, Chih-An Katherine Lin, Huei-Hsin Chang, Victoria Chiu. Mathematical modelling for determining economic batch size and optimal number of deliveries for EPQ model with quality assurance. Mathematical and Computer Modelling of Dynamical Systems. 2010; 16 (4):373-388.
Chicago/Turabian StyleYuan-Shyi Peter Chiu; Chih-An Katherine Lin; Huei-Hsin Chang; Victoria Chiu. 2010. "Mathematical modelling for determining economic batch size and optimal number of deliveries for EPQ model with quality assurance." Mathematical and Computer Modelling of Dynamical Systems 16, no. 4: 373-388.
Yuan-Shyi Peter Chiu; Feng-Tsung Cheng; Huei-Hsin Chang. Remarks on the optimization process of a manufacturing system with stochastic breakdown and rework. Applied Mathematics Letters 2010, 23, 1152 -1155.
AMA StyleYuan-Shyi Peter Chiu, Feng-Tsung Cheng, Huei-Hsin Chang. Remarks on the optimization process of a manufacturing system with stochastic breakdown and rework. Applied Mathematics Letters. 2010; 23 (10):1152-1155.
Chicago/Turabian StyleYuan-Shyi Peter Chiu; Feng-Tsung Cheng; Huei-Hsin Chang. 2010. "Remarks on the optimization process of a manufacturing system with stochastic breakdown and rework." Applied Mathematics Letters 23, no. 10: 1152-1155.