Simultaneous control of maintenance and production rates of a manufacturing system with defective products

In the past three decades, studies of simultaneous maintenance and production planning have been focusing on age-dependent machine failure and inventory. This paper presents the interaction between defective products and optimal control of production rate, lead time and inventory. Our aim is to minimize the expected discounted overall cost due to maintenance activities, inventory holding and backlogs. Through Condition-Based Maintenance, we monitor in a real time the manufacturing system’s health by describing N operational states. We consider two maintenance states of a machine controlled by two decision variables: production and maintenance rates. The optimal policy is characterized by the dynamic programming solution to a piecewise deterministic optimal control problem. A numerical illustration and a sensitive analysis are developed with a set of parameters calibrated on an existing manufacturing system.     

On continuous review stochastic (s, S) inventory systems with ordering delays

In this paper a continuous review (s, S) inventory system with ordering delays is considered. Demands for the item arrive according to a Poisson process. When the inventory level drops to s, the order is triggered. However, due to an unavoidable delay, the order is actually placed after a random amount of time. Once the order is placed, it is instantaneously delivered bringing the inventory level back to S. Under a cost structure which includes a setup cost, a holding cost and a penalty cost, an expression for the expected cost per unit time for given control values is obtained. Then some properties of the cost functions are developed to characterize the optimal policy. Based on these properties, an efficient search procedure to find the optimal (s, S) policy is presented.     

An EMQ model in an imperfect production process

The intention of this article is to develop a framework of production policy (resumption and non-resumption) in order to find out optimal safety stock, optimal production rate and production lot size. It encompasses specific versions of the concept of quality and inventory model, stochastic machine breakdown and its correcting and regular repair paths with safety stocks. This framework hopefully serves to simplify answers to the important questions: How much safety stocks, production rate and production lot size are required to minimise the total expected system cost. The optimal production rate, production lot size, production run time and safety stocks are determined numerically and the joint effect of process deterioration, machine breakdown and its repair (correcting and preventive) on the optimal decision is investigated for a numerical example. Such an investigation should also yield logistics directions for the design of products and their manufacturing processes.     

Integrated production-inventory models for imperfect production processes under inspection schedules

This paper deals with inventory models that unify the inventory problems of raw materials and finished products for a single product imperfect manufacturing system. The product is manufactured in batches, and raw materials are jointly replenished from outside suppliers. The system is assumed to deteriorate during the production process. As a result, some proportion of defective items is produced. The defective items are reworked at some cost either before or after a sale. Periodic inspections at equally spaced times and restorations of the production process are used to operate the system. The objective is to minimize the expected total cost for the system. A solution procedure is developed to find a near optimal solution for the basic model. The analysis is extended to various cases where the defect rate is a function of the setup cost, the proportion of defective items is not constant, or the inventory system has a limited capacity for raw materials.     

Maintenance scheduling and production control of multiple-machine manufacturing systems

This paper deals with the production and preventive maintenance control problem for a multiple-machine manufacturing system. The objective of such a problem is to find the production and preventive maintenance rates for the machines so as to minimize the total cost of inventory/backlog, repair and preventive maintenance. A two-level hierarchical control model is presented, and the structure of the control policy for both identical and non-identical manufacturing systems is described using parameters, referred to here as input factors. By combining analytical formalism with simulation-based statistical tools such as experimental design and response surface methodology, an approximation of the optimal control policies and values of input factors are determined. The results obtained extend those available in existing literature to cover non-identical machine manufacturing systems. A numerical example and a sensitivity analysis are presented in order to illustrate the robustness of the proposed approach. The extension of the proposed production and preventive maintenance policies to cover large systems (multiple machines, multiple products) is discussed.     

Multi-objective imperfect maintenance optimization for production system with an intermediate buffer

In several production systems, buffer stocks are built between consecutive machines to ensure the continuity of supply during interruptions of service caused by breakdowns or planned maintenance actions. However, in previous research, maintenance planning is performed individually without considering buffer stocks. In order to balance the trade-offs between them, in this study, an integrated model of buffer stocks and imperfective preventive maintenance for a production system is proposed. This paper considers a repairable machine subject to random failure for a production system by considering buffer stocks. First, the random failure rate of a machine becomes larger with the increase of the number of random failures. Thus, the renewal process is used to describe the number of random failures. Then, by considering the imperfect maintenance action reduced the age of the machine partially, a mathematical model is developed in order to determine the optimal values of the two decision variables which characterize the proposed maintenance strategy and which are: the size of the buffer stock and the maintenance interval. The optimal values are those which minimize the average total cost per time unit including maintenance cost, inventory holding cost and shortage cost, and satisfy the availability constraint. Finally, a heuristic procedure is used to solve the proposed model, and one experiment is used to evaluate the performance of the proposed methods for joint optimization between buffer stocks and maintenance policy. The results show that the proposed methods have a better performance for the joint optimization problem and can be able to obtain a relatively good solution in a short computation time.     

The EOQ repair and waste disposal model with switching costs

This paper addresses the problem of determining the optimal batch sizes for production and recovery in an EOQ (economic order/production quantity) repair and waste disposal model context. This paper assumes that a first shop is manufacturing new products as well as repairing products used by a second shop. The used products can either be stored in the second shop and then be brought back to the first shop in an approach used to reduce inventory costs, or be disposed outside the system. The works available in the literature assumed a general time interval and ignored the very first time interval where no repair runs are performed. This assumption resulted in an over estimation of the average inventory level and subsequently the holding cost. These works also have not accounted for switching costs when alternating between production and recovery runs, which are common when switching among products or jobs in a manufacturing facility. This paper addresses these two limitations. Mathematical models are developed with numerical examples presented and results discussed.     

Non-permutation flowshop scheduling with dual resources

Typically, in order to process jobs in a flowshop both machines and labor are required. However, in traditional scheduling problems, labor is assumed to be plentiful and only machine is considered to be a constraint. This assumption could be due to the lower cost of labor compared to machines or the complexity of dual-resource constrained problems. In this paper a mathematical model is developed to minimize the work-in-process inventory while maximizing the service level in a flowshop with dual resources. The model focuses on optimizing a non-permutation flowshop. There are different skill levels considered for labor and the setup times on machines are sequence-dependent. Jobs are allowed to skip one or more stages in the flowshop. Job release and machine availability times are considered to be dynamic. The problem is solved in two layers. The outer layer is a search algorithm to find the schedule of jobs on the machine (traditional flowshop scheduling problem) and the inner layer is a three-step heuristic to find a schedule of jobs on labor in accordance to the machine schedule. Three different search algorithms are developed to solve the proposed NP-hard problem. First algorithm can solve a permutation flowshop while the other two are developed to solve a non-permutation flowshop. The comparison between the optimal solution and the search algorithms in small examples shows a good performance of the algorithms with an average deviation of only 2.00%. An experimental design analyzes the effectiveness and efficiency of the algorithms statistically. The results show that non-permutation algorithms perform better than the permutation algorithm, although the former are less efficient. The effectiveness and efficiency in all three algorithms have an inverse relation. To the best of our knowledge, this research is the first of its kind to provide a comprehensive mathematical model for dual resource flowshop scheduling problem.     

Stohastic optimal production control problem with corrective maintenance

We consider a production control problem in a manufacturing system with failure-prone machines and a constant demand rate. The objective is to minimise a discounted inventory holding and backlog cost over an infinite planning horizon. The availability of the machines is improved through a corrective maintenance strategy. The decision variables are the production and the machine repair rates, which influence the inventory levels and the system capacity, respectively. It is shown that, for constant demand rates and exponential failure and repair times distributions of the machines, the hedging point policy is optimal. Such a policy is modified herein and parameterised by factors representing the thresholds of involved products and switching inventory levels for corrective maintenance. With the obtained policy, simulation experiments are combined to experimental design and response surface methodology to estimate the optimal production and corrective maintenance policies, respectively. The usefulness of the proposed approach is illustrated through a numerical example.     

A study on an inventory model for non-instantaneous deteriorating items with permissible delay in payments

In this study, an appropriate inventory model for non-instantaneous deteriorating items with permissible delay in payments is considered. The purpose of this study is to find an optimal replenishment policy for minimizing the total relevant inventory cost. This mathematical model is a general framework that comprises numerous previous models such as in Ghare and Schrader [Ghare, P. M., & Schrader, G. H. (1963). A model for exponentially decaying inventory system. International Journal of Production Research, 21, 449–460], Goyal [Goyal, S. K. (1985). Economic order quantity under conditions of permissible delay in payments. Journal of the Operational Research Society, 36, 335–338], and Teng [Teng, J. T. (2002). On the economic order quantity under conditions of permissible delay in payments. Journal of the Operational Research Society, 53, 915–918] as special cases. We have developed some useful theorems to characterize the optimal solutions and provide an easy-to-use method to find the optimal replenishment cycle time and order quantity under various circumstances. Several numerical examples are given to test and verify the theoretical results. Finally, a sensitivity analysis of the optimal solution with respect to major parameters is also included. According to the results of numerical analysis, we provided several ways for the retailer to effectively reduce total annual relevant inventory cost.     

Computational aspects of an extended EMQ model with variable production rate

The paper considers a generalized economic manufacturing quantity (EMQ) model with stochastic machine breakdown and repair in which the time to machine failure, corrective and preventive repair times are all assumed to be random variables. The model is formulated under general failure and general repair time distributions, treating the machine production rate (speed) as a decision variable. As the stress condition of the machine changes with the production rate, the failure rate is assumed to be dependent on the production rate. The model is further extended to the case where certain safety stocks are hold in inventory to protect against possible stockout during machine repair. The solution procedure and computational algorithms of the associated constrained optimization problems are provided. Numerical examples are taken to determine the optimal production policies by the proposed algorithms and examine the sensitivity of the model parameters.Several economic manufacturing quantity (EMQ) models for unreliable manufacturing systems have been developed in the literature even for general failure and general repair (corrective) time distributions. In these studies, preventive repair has not been considered in a general way and efforts have been made to derive the production control and maintenance policy for inflexible manufacturing systems, where the machine capacity is pre-determined. The purpose of this article is to formulate a generalized EMQ model for a flexible unreliable manufacturing system in which (i) the time to machine failure and repair (corrective and preventive) times follow general probability distributions and (ii) the machine failure rate is dependent on the production rate. Consideration of a variable production rate makes the model hard to analyze completely. So, attempt has also been made to get into its computational aspects by developing solution algorithms.     

Hybrid genetic algorithms with dispatching rules for unrelated parallel machine scheduling with setup time and production availability

This article considers the unrelated parallel machine scheduling problem with sequence- and machine-dependent setup times and machine-dependent processing times. Furthermore, the machine has a production availability constraint to each job. The objective of this problem is to determine the allocation policy of jobs and the scheduling policy of machines to minimize the total completion time. To solve the problem, a mathematical model for the optimal solution is derived, and hybrid genetic algorithms with three dispatching rules are proposed for large-sized problems. To assess the performance of the algorithms, computational experiments are conducted and evaluated using several randomly generated examples.     

Ordinal algorithms for parallel machine scheduling with nonsimultaneous machine available times

This paper considers ordinal algorithms for parallel machine scheduling with nonsimultaneous machine available times. Two objects of minimizing the latest job completion time and minimizing the latest machine completion time are studied. For the first objective, we present the optimal algorithms for m = 2, 3, 4 machine cases. For m ≥ 5, we propose an algorithm with competitive ratio 2 - 1/(m - 1) while the lower bound is 5/3. For the second objective, the optimal algorithm is also given. Furthermore, for a special case, an algorithm with significantly improved competitive ratio is given.     

An operational policy for an integrated inventory system under consignment stock policy with controllable lead time and buyers’ space limitation

This paper aims to enable the decision maker of an integrated vendor–buyer system, under Consignment Stock (CS) policy, to make the optimal/sub-optimal production/replenishment decisions where the buyer places a space limitation to the vendor and the lead-time is controllable with an extra investment. Within any production cycle, the vendor produces at a finite rate and ships the outputs to the buyer with a number of equal-sized lots. With a long-term consignment stock agreement, the vendor takes responsibility to maintain a certain inventory level in the buyer's warehouse. Some of the shipments are delayed so that the buyer's inventory does not go beyond the capacity limitation. The buyer compensates the vendor after the complete consumption of the products. The holding cost consists of a storage component and a financial component. Two constraint four-variable non-linear integer optimization models are established wherein the buyer space limitation is considered. Because the developed models are mathematically very difficult to solve, three doubly hybrid meta-heuristic algorithms are employed to solve the models. The computational results show that one of these three algorithms works very well both in the sense of the success rate and the mean CPU time. The analysis of the computational example also reveals the quantitative effects the buyer space limitation may have to the annual joint total expected cost (JTEC) of the integrated system.     

卷烟生产计划排产模型建立与优化

为了对卷烟生产进行自动优化排产,构建出卷烟排产分层递阶优化流程,对流程的关键环节设计了自动优化模型;分别建立了带约束限制的卷烟多点生产任务分配和生产点详细排产数学模型。对两个模型分别设计了改进的遗传优化算法。对多点生产模型,提出了一种基于遗传算法-模式搜索法的任务分配优化算法,改善了单独使用遗传算法局部搜索能力差的缺陷;对详细排产最大完工时间数学模型,设计了相应的算法操作策略,将牌号优先规则、生产约束嵌入到遗传算法中,满足了实际生产限制。通过卷烟生产排产实例,验证了算法的有效性,给出了优化的卷烟精确排产计划,降低了卷烟生产总成本和库存,缩短了总生产流程时间,提高了设备效率。     

Multiproduct production/inventory control under random demands

Studies the optimal production/inventory control policy for a single machine multiproduct production system. The machine produces to fill the end-product inventory stock and the demand is satisfied from the inventory when available; unsatisfied demand is backlogged until the product becomes available as the result of production. For each product, the demand follows a Poisson process and the unit processing time is known. When the machine switches production from one product to another, it incurs a set-up time and a set-up cost. The relevant costs include the set-up cost, a cost per unit time while the machine is running, and linear costs for inventory and backlogging. This problem is modeled as a semi-Markov decision process using the criterion of minimizing expected total cost with discounting over an infinite horizon. Procedures for computing near-optimal policies and their error bounds are developed. The error bound given by the authors' procedure is shown to be much tighter than the one given by the “norm-based” approach. Computational test results are presented to show the structure of the near-optimal policy and how its accuracy is affected by the system characteristics such as capacity utilization and set-up time     

The distribution free continuous review inventory system with a service level constraint

The stochastic inventory models require the information on the lead time demand. However, the distributional information of the lead time demand is often limited in practice. We relax the assumption that the cumulative distribution function, say F, of the lead time demand is completely known and merely assume that the first two moments of F are known and finite. The distribution free approach for the inventory model consists of finding the most unfavorable distribution for each decision variable and then minimizing over the decision variable. We apply the distribution free approach to the continuous review inventory system with a service level constraint. We develop an iterative procedure to find the optimal order quantity and reorder level.     

A cost/benefit model for investments in inventory and preventive maintenance in an imperfect production system

In this research, a cost/benefit model is developed for supporting investment strategies about inventory and preventive maintenance in an imperfect production system. The effect of such investments on the return is expressed as a function of measurable variables. Using this model, the decision maker can decide whether investments in inventory and preventive maintenance are necessary and how much to invest. This investment model is developed for an imperfect production system with imperfect product quality and supplied quantity. Investments in inventory and preventive maintenance increase service level for the customer and reduce the proportion of defective products, and hence affect stockout and backlog of supplied products and the delivery time to the customer. This model includes in its scope investment in inventory and preventive maintenance, manufacturing cost, inventory cost, backlog cost, stockout cost, and delay cost. This model can be used to evaluate the effects of investments on the financial cost/benefit and other relevant critical performance measures. This model can be solved by an iterative process using the Sequential Quadratic Programming Method. The optimal investment in inventory with respect to the service level and the optimal investment in preventive maintenance with respect to the proportion of defective items can be obtained first, and then other relevant costs can also be obtained.     

Mathematical modeling for solving manufacturing run time problem with defective rate and random machine breakdown

This paper employs mathematical modeling for solving manufacturing run time problem with random defective rate and stochastic machine breakdown. In real life manufacturing systems, generation of nonconforming items and unexpected breakdown of production equipment are inevitable. For the purpose of addressing these practical issues, this paper studies a system that may produce defective items randomly and it is also subject to a random equipment failure. A no resumption inventory control policy is adopted when breakdown occurs. Under such a policy, the interrupted lot is aborted and malfunction machine is immediately under repair. A new lot will be started only when all on-hand inventory are depleted. Modeling and numerical analyses are used to establish the solution procedure for such a problem. As a result, the optimal manufacturing run time that minimizes the long-run average production–inventory cost is derived. A numerical example is provided to show how the solution procedure works as well as the usages of research results.