Value Stream Oriented Inventory Management

Producing companies aspire to high delivery availability despite appearing disruptions. To ensure high delivery availability safety stocksare required. Howeversafety stock leads to additional capital commitment and compensates disruptions instead of solving the reasons.The intention is to increase the stability in production by configuring the production planning and control systematically. Thus the safety stock can be reduced. The largest proportion of inventory in producing companies is caused by batch inventory, schedule deviations and variability of demand rates.These reasons for high inventory levels can be reduced by configuring the production planning and control specifically. Hence the inventory level can be reduced. This is enabled by synchronizing the lot size straightening the demand as well as optimizing the releasing order, sequencing and capacity control.

Determining Optimal Production Plan by Revised Surrogate Worth Trade-off Method

The authors of this work indicate by means of a concrete example that it is possible to apply efficaciously the method of multiple criteria programming in dealing with the problem of determining the optimal production plan for a certain period of time. The work presents: (1) the selection of optimization criteria, (2) the setting of the problem of determining an optimal production plan, (3) the setting of the model of multiple criteria programming in finding a solution to a given problem, (4) the revised surrogate trade-off method, (5) generalized multicriteria model for solving production planning problem and problem of choosing technological variants in the metal manufacturing industry. In the final part of this work the authors reflect on the application of the method of multiple criteria programming while determining the optimal production plan in manufacturing enterprises.

An Aggregate Production Planning Model for Brass Casting Industry in Fuzzy Environment

In this paper, we propose a fuzzy aggregate production planning (APP) model for blending problem in a brass factory which is the problem of computing optimal amounts of raw materials for the total production of several types of brass in a period. The model has deterministic and imprecise parameters which follows triangular possibility distributions. The brass casting APP model can not always be solved by using common approaches used in the literature. Therefore a mathematical model is presented for solving this problem. In the proposed model, the Lai and Hwang-s fuzzy ranking concept is relaxed by using one constraint instead of three constraints. An application of the brass casting APP model in a brass factory shows that the proposed model successfully solves the multi-blend problem in casting process and determines the optimal raw material purchasing policies.

A Design of Supply Chain Management System with Flexible Planning Capability

In production planning (PP) periods with excess capacity and growing demand, the manufacturers have two options to use the excess capacity. First, it could do more changeovers and thus reduce lot sizes, inventories, and inventory costs. Second, it could produce in excess of demand in the period and build additional inventory that can be used to satisfy future demand increments, thus delaying the purchase of the next machine that is required to meet the growth in demand. In this study we propose an enhanced supply chain planning model with flexible planning capability. In addition, a 3D supply chain planning system is illustrated.

Optimal Aggregate Production Planning with Fuzzy Data

This paper investigates the optimization problem of multi-product aggregate production planning (APP) with fuzzy data. From a comprehensive viewpoint of conserving the fuzziness of input information, this paper proposes a method that can completely describe the membership function of the performance measure. The idea is based on the well-known Zadeh-s extension principle which plays an important role in fuzzy theory. In the proposed solution procedure, a pair of mathematical programs parameterized by possibility level a is formulated to calculate the bounds of the optimal performance measure at a . Then the membership function of the optimal performance measure is constructed by enumerating different values of a . Solutions obtained from the proposed method contain more information, and can offer more chance to achieve the feasible disaggregate plan. This is helpful to the decision-maker in practical applications.

Study on Scheduling of the Planning Method Using the Web-based Visualization System in a Shipbuilding Block Assembly Shop

Higher productivity and less cost in the ship manufacturing process are required to maintain the international competitiveness of morden manufacturing industries. In shipbuilding, however, the Engineering To Order (ETO) production method and production process is very difficult. Thus, designs change frequently. In accordance with production, planning should be set up according to scene changes. Therefore, fixed production planning is very difficult. Thus, a scheduler must first make sketchy plans, then change the plans based on the work progress and modifications. Thus, data sharing in a shipbuilding block assembly shop is very important. In this paper, we proposed to scheduling method applicable to the shipbuilding industry and decision making support system through web based visualization system.

Reduced Inventories, High Reliability and Short Throughput Times by Using CONWIP Production Planning System

CONWIP (constant work-in-process) as a pull production system have been widely studied by researchers to date. The CONWIP pull production system is an alternative to pure push and pure pull production systems. It lowers and controls inventory levels which make the throughput better, reduces production lead time, delivery reliability and utilization of work. In this article a CONWIP pull production system was simulated. It was simulated push and pull planning system. To compare these systems via a production planning system (PPS) game were adjusted parameters of each production planning system. The main target was to reduce the total WIP and achieve throughput and delivery reliability to minimum values. Data was recorded and evaluated. A future state was made for real production of plastic components and the setup of the two indicators with CONWIP pull production system which can greatly help the company to be more competitive on the market.

Preemptive Possibilistic Linear Programming:Application to Aggregate Production Planning

This research proposes a Preemptive Possibilistic Linear Programming (PPLP) approach for solving multiobjective Aggregate Production Planning (APP) problem with interval demand and imprecise unit price and related operating costs. The proposed approach attempts to maximize profit and minimize changes of workforce. It transforms the total profit objective that has imprecise information to three crisp objective functions, which are maximizing the most possible value of profit, minimizing the risk of obtaining the lower profit and maximizing the opportunity of obtaining the higher profit. The change of workforce level objective is also converted. Then, the problem is solved according to objective priorities. It is easier than simultaneously solve the multiobjective problem as performed in existing approach. Possible range of interval demand is also used to increase flexibility of obtaining the better production plan. A practical application of an electronic company is illustrated to show the effectiveness of the proposed model.

Integrated Approaches to Enhance Aggregate Production Planning with Inventory Uncertainty Based On Improved Harmony Search Algorithm

This work presents a multiple objective linear programming (MOLP) model based on the desirability function approach for solving the aggregate production planning (APP) decision problem upon Masud and Hwang-s model. The proposed model minimises total production costs, carrying or backordering costs and rates of change in labor levels. An industrial case demonstrates the feasibility of applying the proposed model to the APP problems with three scenarios of inventory levels. The proposed model yields an efficient compromise solution and the overall levels of DM satisfaction with the multiple combined response levels. There has been a trend to solve complex planning problems using various metaheuristics. Therefore, in this paper, the multi-objective APP problem is solved by hybrid metaheuristics of the hunting search (HuSIHSA) and firefly (FAIHSA) mechanisms on the improved harmony search algorithm. Results obtained from the solution of are then compared. It is observed that the FAIHSA can be used as a successful alternative solution mechanism for solving APP problems over three scenarios. Furthermore, the FAIHSA provides a systematic framework for facilitating the decision-making process, enabling a decision maker interactively to modify the desirability function approach and related model parameters until a good optimal solution is obtained with proper selection of control parameters when compared.

Modeling and Optimization of Aggregate Production Planning - A Genetic Algorithm Approach

The Aggregate Production Plan (APP) is a schedule of the organization-s overall operations over a planning horizon to satisfy demand while minimizing costs. It is the baseline for any further planning and formulating the master production scheduling, resources, capacity and raw material planning. This paper presents a methodology to model the Aggregate Production Planning problem, which is combinatorial in nature, when optimized with Genetic Algorithms. This is done considering a multitude of constraints of contradictory nature and the optimization criterion – overall cost, made up of costs with production, work force, inventory, and subcontracting. A case study of substantial size, used to develop the model, is presented, along with the genetic operators.

Automation of Packing Cell in Fresh Fish Facilities

The problem discussed in this paper involves packing fresh fish fileet of the northern Cod into a standard square container. The fish is first cleaned and split and then collected on a belt ready to be stacked in a container. The aim of our work is to pack the fish into the container with constraints on the amount of overlap allowed for the fileets. The current focus is to design a packing cell that can be real-time and of practical use, while finding the optimal solution to the degree of overlap and minimise the unused space of the container.

An MADM Framework toward Hierarchical Production Planning in Hybrid MTS/MTO Environments

This paper proposes a new decision making structure to determine the appropriate product delivery strategy for different products in a manufacturing system among make-to-stock, make-toorder, and hybrid strategy. Given product delivery strategies for all products in the manufacturing system, the position of the Order Penetrating Point (OPP) can be located regarding the delivery strategies among which location of OPP in hybrid strategy is a cumbersome task. In this regard, we employ analytic network process, because there are varieties of interrelated driving factors involved in choosing the right location. Moreover, the proposed structure is augmented with fuzzy sets theory in order to cope with the uncertainty of judgments. Finally, applicability of the proposed structure is proven in practice through a real industrial case company. The numerical results demonstrate the efficiency of the proposed decision making structure in order partitioning and OPP location.

Dynamics In Production Processes

An increasingly dynamic and complex environment poses huge challenges to production enterprises, especially with regards to logistics. The Logistic Operating Curve Theory, developed at the Institute of Production Systems and Logistics (IFA) of the Leibniz University of Hanover, is a recognized approach to describing logistic interactions, nevertheless, it reaches its limits when it comes to the dynamic aspects. In order to facilitate a timely and optimal Logistic Positioning a method is developed for quickly and reliably identifying dynamic processing states.

Production Planning and Measuring Method for Non Patterned Production System Using Stock Cutting Model

The simple methods used to plan and measure non patterned production system are developed from the basic definition of working efficiency. Processing time is assigned as the variable and used to write the equation of production efficiency. Consequently, such equation is extensively used to develop the planning method for production of interest using one-dimensional stock cutting problem. The application of the developed method shows that production efficiency and production planning can be determined effectively.

Order Partitioning in Hybrid MTS/MTO Contexts using Fuzzy ANP

A novel concept to balance and tradeoff between make-to-stock and make-to-order has been hybrid MTS/MTO production context. One of the most important decisions involved in the hybrid MTS/MTO environment is determining whether a product is manufactured to stock, to order, or hybrid MTS/MTO strategy. In this paper, a model based on analytic network process is developed to tackle the addressed decision. Since the regarded decision deals with the uncertainty and ambiguity of data as well as experts- and managers- linguistic judgments, the proposed model is equipped with fuzzy sets theory. An important attribute of the model is its generality due to diverse decision factors which are elicited from the literature and developed by the authors. Finally, the model is validated by applying to a real case study to reveal how the proposed model can actually be implemented.

Solving Part Type Selection and Loading Problem in Flexible Manufacturing System Using Real Coded Genetic Algorithms – Part II: Optimization

This paper presents modeling and optimization of two NP-hard problems in flexible manufacturing system (FMS), part type selection problem and loading problem. Due to the complexity and extent of the problems, the paper was split into two parts. The first part of the papers has discussed the modeling of the problems and showed how the real coded genetic algorithms (RCGA) can be applied to solve the problems. This second part discusses the effectiveness of the RCGA which uses an array of real numbers as chromosome representation. The novel proposed chromosome representation produces only feasible solutions which minimize a computational time needed by GA to push its population toward feasible search space or repair infeasible chromosomes. The proposed RCGA improves the FMS performance by considering two objectives, maximizing system throughput and maintaining the balance of the system (minimizing system unbalance). The resulted objective values are compared to the optimum values produced by branch-and-bound method. The experiments show that the proposed RCGA could reach near optimum solutions in a reasonable amount of time.

An Analytical Framework for Multi-Site Supply Chain Planning Problems

As the gradual increase of the enterprise scale, the firms may possess many manufacturing plants located in different places geographically. This change will result in the multi-site production planning problems under the environment of multiple plants or production resources. Our research proposes the structural framework to analyze the multi-site planning problems. The analytical framework is composed of six elements: multi-site conceptual model, product structure (bill of manufacturing), production strategy, manufacturing capability and characteristics, production planning constraints, and key performance indicators. As well as the discussion of these six ingredients, we also review related literatures in this paper to match our analytical framework. Finally we take a real-world practical example of a TFT-LCD manufacturer in Taiwan to explain our proposed analytical framework for the multi-site production planning problems.