Multi-period part selection and loading problems in flexible manufacturing systems

We consider multi-period part selection and loading problems in flexible manufacturing systems with the objective of minimizing subcontracting costs. The part selection problem is to select sets of part types and to determine their quantities to be produced during the upcoming planning horizon while satisfying due dates of all orders for the parts, and the loading problem involves allocation of operations and required tools to machines. Production demands should be satisfied for periods through subcontracting if production demands cannot be satisfied by the system due to machine capacity or tool magazine capacity constraints. For the part selection and loading problems, we develop three iterative algorithms, called the forward algorithm, the backward algorithm and the capacity approximation algorithm, that solve the part selection and loading problems iteratively for each period. To compare the three algorithms, a series of computational experiments is done on randomly generated test problems.     

Multi-period Vehicle Routing Problem with Due dates

In this paper we study the Multi-period Vehicle Routing Problem with Due dates (MVRPD), where customers have to be served between a release and a due date. Customers with due dates exceeding the planning period may be postponed at a cost. A fleet of capacitated vehicles is available to perform the distribution in each day of the planning period. The objective of the problem is to find vehicle routes for each day such that the overall cost of the distribution, including transportation costs, inventory costs and penalty costs for postponed service, is minimized. We present alternative formulations for the MVRPD and enhance the formulations with valid inequalities. The formulations are solved with a branch-and-cut algorithm and computationally compared. Furthermore, we present a computational analysis aimed at highlighting managerial insights. We study the potential benefit that can be achieved by incorporating flexibility in the due dates and the number of vehicles. Finally, we highlight the effect of reducing vehicle capacity.     

Solution of fuzzy integrated production and marketing planning based on extension principle

The integration of production and marketing planning is crucial in practice for increasing a firm’s profit. However, the conventional inventory models determine the selling price and demand quantity for a retailer’s maximal profit with exactly known parameters. When the demand quantity, unit cost, and production rate are represented as fuzzy numbers, the profit calculated from the model should be fuzzy as well. Unlike previous studies, this paper develops a solution method to find the fuzzy profit of the integrated production and marketing planning problem when the demand quantity, unit cost, and production rate are represented as fuzzy numbers. Based on Zadeh’s extension principle, we transform the problem into a pair of two-level mathematical programming models to calculate the lower bound and upper bound of the fuzzy profit. According to the duality theorem of geometric programming technique, the two-level mathematical program is transformed into the one-level conventional geometric program to solve. At a specific α-level, we can derive the global optimum solutions for the lower and upper bounds of the fuzzy profit by applying well-developed theories of geometric programming. Examples are given to illustrate the whole idea proposed in this paper.     

Solution of fuzzy integrated production and marketing planning based on extension principle

The integration of production and marketing planning is crucial in practice for increasing a firm’s profit. However, the conventional inventory models determine the selling price and demand quantity for a retailer’s maximal profit with exactly known parameters. When the demand quantity, unit cost, and production rate are represented as fuzzy numbers, the profit calculated from the model should be fuzzy as well. Unlike previous studies, this paper develops a solution method to find the fuzzy profit of the integrated production and marketing planning problem when the demand quantity, unit cost, and production rate are represented as fuzzy numbers. Based on Zadeh’s extension principle, we transform the problem into a pair of two-level mathematical programming models to calculate the lower bound and upper bound of the fuzzy profit. According to the duality theorem of geometric programming technique, the two-level mathematical program is transformed into the one-level conventional geometric program to solve. At a specific α-level, we can derive the global optimum solutions for the lower and upper bounds of the fuzzy profit by applying well-developed theories of geometric programming. Examples are given to illustrate the whole idea proposed in this paper.     

A hybrid fuzzy goal programming approach with different goal priorities to aggregate production planning

In this study a hybrid (including qualitative and quantitative objectives) fuzzy multi objective nonlinear programming (H-FMONLP) model with different goal priorities will be developed for aggregate production planning (APP) problem in a fuzzy environment. Using an interactive decision making process the proposed model tries to minimize total production costs, carrying and back ordering costs and costs of changes in workforce level (quantitative objectives) and maximize total customer satisfaction (qualitative objective) with regarding the inventory level, demand, labor level, machines capacity and warehouse space. A real-world industrial case study demonstrates applicability of proposed model to practical APP decision problems. GENOCOP III (Genetic Algorithm for Numerical Optimization of Constrained Problems) has been used to solve final crisp nonlinear programming problem.     

The strategic choice to continue outsourcing,switch vendors,or backsource: Do switching costs matter?

IT outsourcing contracts are often discontinued in favor of other alternatives (returning to in-house development, or switching to another vendor). Switching costs are experienced when terminating a business relationship and securing an alternative. We tried to answer the question: do switching costs matter significantly in the strategic choice to continue outsourcing, switch vendors, or backsource? Switching costs were considered, such as those due to IT operations (sunk investment, lost performance, system upgrades, uncertainty, and induction–retraining–performance), personnel-replacement costs (candidate search, and IT/setup), and in-house learning (cognitive/behavioral learning). A field survey was conducted, and, for each of these cost types, the differences between group means across the three groups (outsourcing continuation, vendor switching, and backsourcing) were determined. The findings suggested that customer organizations preferred outsourcing continuation most and backsourcing least when their switching costs were high. However, the relative preference for vendor switching depended on the switching cost type.     

Fuzzy parametric programming model for multi-objective integrated solid waste management under uncertainty

Solid waste management is increasingly becoming a challenging task for the municipal authorities due to increasing waste quantities, changing waste composition, decreasing land availability for waste disposal sites and increasing awareness about the environmental risk associated with the waste management facilities. The present study focuses on the optimum selection of the treatment and disposal facilities, their capacity planning and waste allocation under uncertainty associated with the long-term planning for solid waste management. The fuzzy parametric programming model is based on a multi-objective, multi-period system for integrated planning for solid waste management. The model dynamically locates the facilities and allocates the waste considering fuzzy waste quantity and capacity of waste management facility. The model addresses uncertainty in waste quantity as well as uncertainties in the operating capacities of waste management facilities simultaneously. It was observed that uncertainty in waste quantity is likely to affect the planning for waste treatment/disposal facilities more as compared with the uncertainty in the capacities of the waste management facilities. The relationship between increase in waste quantity and increase in the total cost/risk involved in waste management is found to be nonlinear. Therefore, it is possible that a marginal change in waste quantity could increase the total cost/risk substantially. The information obtained from the analysis of modeling results can be effectively used for understanding the effect of changing the priorities and objectives of planning decisions on facility selections and waste diversions.     

Modelling the effect of demand variations on the performance of a production system

Modelling the effect of demand variations on a production system manufacturing multiple products is discussed. The various system costs involved in the production system, namely set-up cost and inventory cost incurred due to change in demands for the products with respect to products and planning periods are estimated. A statistical modelling is presented for determining the production capacity and inventory level requirement to satisfy the customer to a certain level decided by the management. Two important factors, (i) number of types of products and (ii) multiple planning horizons are considered to identify the costs as well as the production capacity and inventory level requirements. A statistical method, analysis of variance (ANOVA) is used to study the variations in the demands and costs involved. Finally, an example is presented to explain the application and the behaviour of the statistical model.     

Available-to-promise based bidding decision by fuzzy mathematical programming and genetic algorithm

The present study attempts to integrate bidding decisions with order promising and production planning to enhance supplier profitability and service level. This study formulates the bid price and production plan as a mixed integer programming model with fuzzy constraints. The fuzzy constraints represent the decision-maker’s subjective judgment regarding the customer’s price tolerance. The proposed model combines the advanced available-to-promise (AATP) concept to find optimum resource allocation and enable accurate estimations of production costs and delivery dates. The proposed solution procedure determines the optimum bid price by striking a compromise between profitability and the possibility to win the contract. This study develops a genetic algorithm to solve this problem, and provides computer simulated experiments to evaluate the performance of the proposed approach.     

Application of fuzzy multi-objective linear programming to aggregate production planning

This study develops a fuzzy multi-objective linear programming (FMOLP) model for solving the multi-product aggregate production planning (APP) decision problem in a fuzzy environment. The proposed model attempts to minimize total production costs, carrying and backordering costs and rates of changes in labor levels considering inventory level, labor levels, capacity, warehouse space and the time value of money. A numerical example demonstrates the feasibility of applying the proposed model to APP problem. Its advantages are also discussed. The proposed model yields a compromise solution and the decision maker's overall levels of satisfaction. In particular, in contrast to other APP models, several significant characteristics of the proposed model are presented.     

Organizational form, incentives and the management of information technology: Opening the black box of outsourcing

In this work, we attempt to show how operations researchers can effectively manage the production costs of computing services. The thesis of this paper is that an outsourcing firm, by virtue of the fact that it manages the IT function for multiple firms, is privileged to information not available to the focal firm. We derive the conditions under which this privileged information allows the partner firm to construct superior incentives for its employees, resulting in superior IT management. Further, we detail the circumstances under which outsourcing will not provide additional benefit, and what sorts of partners are likely to provide the greatest benefit. The two main findings are that for low levels of uncertainty, both in-house and relational management are equally acceptable. However, as uncertainty increases, the value of relational management increases. Conclusions are drawn and extensions are proposed, related to economies of scale and transactions costs.     

Intra-supply chain system with multiple sales locations and quality assurance

The emergence of the global economy has transformed the interdepartmental nature of a transnational enterprise into a highly collaborative oriented team. This transformation enables the enterprise to lower its transaction and coordination costs and increase its competitive advantage in the global market. This study investigates such a so-called intra-supply chain system that exists in present-day transnational firms, wherein a single production unit manufactures products to meet the demands of multiple regional sales offices and incorporates quality assurance in its production. The objective of the present study is to determine an optimal production quantity and shipment policy that minimizes the integrated production–inventory–delivery costs for the intra-supply chain system. In this study, considerations related to a product’s quality assurance include inspection for quality, rework of defective items and failure in rework. Delivery of the finished products starts when quality of the entire production lot is assured. Multi-shipment policy is used to synchronously transport finished items to multiple locations for satisfying customer demands in each cycle. Mathematical modeling along with Hessian matrix equations is employed to solve the proposed intra-supply chain system. A numerical example with a discussion and cost-benefit analysis of outsourcing work to an external distributor is presented to demonstrate the practical applicability of the obtained results.     

Fuzzy heterogeneous multiattribute decision making method for outsourcing provider selection

One of the critical activities for outsourcing success is outsourcing provider selection, which may be regarded as a type of fuzzy heterogeneous multiattribute decision making (MADM) problems with fuzzy truth degrees and incomplete weight information. The aim of this paper is to develop a new fuzzy linear programming method for solving such MADM problems. In this method, the decision maker’s preferences are given through pair-wise alternatives’ comparisons with fuzzy truth degrees, which are expressed with trapezoidal fuzzy numbers (TrFNs). Real numbers, intervals, and TrFNs are used to express heterogeneous decision information. Giving the fuzzy positive and negative ideal solutions, we define TrFN-type fuzzy consistency and inconsistency indices based on the concept of the relative closeness degrees. The attribute weights are estimated through constructing a new fuzzy linear programming model, which is solved by using the developed fuzzy linear programming method with TrFNs. The relative closeness degrees of alternatives can be calculated to generate their ranking order. An example of the IT outsourcing provider selection problem is analyzed to demonstrate the implementation process and applicability of the method proposed in this paper.     

软计算求解分布式多工厂单件制造业的提前/拖期生产计划问题

描述了分布式多工厂单件制造企业准时化生产计划问题, 以实现最小化提前/拖期惩罚费用、生产成本、产品运输费用之和为目标建立了0-1规划数学模型; 设计了基于模糊规则量化的方法求解模糊决策, 并将模糊决策嵌入到遗传算法中的软计算方法求解模型, 使得算法具有比分枝定界法更快速的寻找优解的能力以及更广泛的适应范围. 结果表明了该模型和算法的有效性和应用潜力.     

软计算求解分布式多工厂多顾客的供应链准时化生产计划问题

描述了分布式多工厂、多顾客的供应链准时化生产计划问题,以实现最小化提前／拖期惩罚费用、生产成本、产品运输费用之和为目标建立了数学模型,将遗传算法与模糊逻辑相结合,设计了软计算方法求解模型,采用基于规则方法的模糊规则量化方法求解模糊决策,并将模糊决策嵌入遗传算法,使得算法具有比分枝定界法更快的寻优能力和更广的适应范围。实例计算结果表明了该模型和算法的有效性和应用潜力。     

The extension of fuzzy QFD: From product planning to part deployment

By focusing on listening to the customers, quality function deployment (QFD) has been a successful analysis tool in product design and development. To solve the uncertainty or imprecision in QFD, numerous researchers have attempted to apply the fuzzy set theory to QFD and have developed various fuzzy QFD approaches. Their models usually concentrate on product planning, the first phase of QFD. The subsequent phases (part deployment, process planning, and production planning) of QFD are seldom addressed. Moreover, their models often use algebraic operations of fuzzy numbers to calculate the fuzzy sets in QFD. Biased results are easily produced after several multiplicative or divisional operations. Aiming to solve these two issues, the objective of this study is to develop an extended fuzzy quality function deployment approach (E-QFD) which expands the research scope, from product planning to part deployment. In product planning, a more advanced method for collecting customer requirements is developed while the competitive analysis is also considered. In part deployment, the original part deployment table is enhanced by including the importance of part characteristics (PCs) and the bottleneck level of PCs. A modified fuzzy k-means clustering method is proposed to classify various bottleneck (or importance) groups of PCs. The failure mode and effects analysis (FMEA) is conducted for the high bottleneck (or high importance) group of PCs through the fuzzy inference approach. Moreover, E-QFD employs a more precise method, α-cut operations, to calculate the fuzzy sets in QFD instead of algebraic operations of fuzzy numbers. Finally, a case study is given to explain the analysis process of the proposed method.     

Fuzzy branch-and-bound algorithm for flow shop scheduling

Scheduling is the allocation of resources over time to perform a collection of task. It is an important subject of production and operations management area. For most of scheduling problems made so far, the processing times of each job on each machine and due dates have been assigned as a real number. However in the real world, information is often ambiguous or imprecise. In this paper fuzzy concept are applied to the flow shop scheduling problems. The branch-and-bound algorithm of Ignall and Schrage was modified and rewritten for three-machine flow shop problems with fuzzy processing time. Fuzzy arithmetic on fuzzy numbers is used to determine the minimum completion time (C _max). Proposed algorithm gets a scheduling result with a membership function for the final completion time. With this membership function determined, a wider point of view is provided for the manager about the optimal schedule.     

A fast genetic algorithm for a critical protection problem in biomedical supply chain networks

In this paper, we present a new bilevel model for a biomedical supply chain network with capacity and budget constraint due to the protection and interdiction operations. The components considered in this model are biomedical devices, distribution centers (DCs), medical suppliers (MSs), and hospitals and patients as the demand points. On the other hand, two levels of decisions in the network planning is suggested: (1) the defender’s decision about protection operations of MSs and DCs, the assignment of clients to the DCs, and quantity of products shipped to DCs from MSs to minimize the demand-weighted traveling costs and transport costs and (2) the attacker’s decision about interdiction operations of MSs and DCs to maximize the capacity or service reduction and losses. Because of nondeterministic polynomial time (NP)-hardness of the problem under consideration, an efficient and fast approach based on a genetic algorithm and a fast branch and cut method (GA–FBC) was developed to solve the proposed model. Also, the efficiency via the comparison of results with the genetic algorithm based on CPLEX (GA-CPLEX) and decomposition method (DM) is investigated. In order to assess the performance of the presented GA–FBC, a set of 27 instances of the problem is used. Comprehensive analysis indicates that the proposed approach significantly solves the problem. In addition, the benefits and advantages of preference with running times and its accuracy is shown numerically. Simulation results clearly demonstrate that the defender’s objective effectively reduced and CPU time also within the large-sized instances of the problem in comparison with the GA-CPLEX and DM.     

Fuzzy Bayesian reliability and availability analysis of production systems

To have effective production planning and control, it is necessary to calculate the reliability and availability of a production system as a whole. Considering only machine reliability in the calculations would most likely result unmet due dates. In this study, a new modelling approach for determining the reliability and availability of a production system is proposed by considering all the components of the system and their hierarchy in the system structure. Components of a production system are defined as production processes; components of the processes are defined as sub-processes. In this hierarchical structure we could model all kinds of failures such as material and supply, management and personnel, and machine and equipment. In the analysis, a fuzzy Bayesian method is used to quantify the uncertainties in the production environment. The suggested modelling approach is illustrated on an example. In the example, also a separate reliability and availability analysis is conducted which only considered machine failures, and the results of both analyses are compared.     

A dialectic view of information systems outsourcing: Pros and cons

In recent years, information systems (IS) outsourcing is increasing in business organizations as a way to govern their IS operations. Burgeoning IS costs, lack of IS organization's responsiveness to users, and a renewed emphasis on return on IS investment are among some of the reasons towards this trend. Media reports are almost unanimous, and at times euphoric, in their claims of benefits. However, a reporting bias must be recognized: first, these reports are, at best, anecdotal accounts and second, they are based on the accounts of outsourcing vendors, consultants, senior executives and those who remained or were promoted in the organization after the outsourcing act. Naturally, these individuals have a vested interest in making their decisions look beneficial. This article discusses the various advantages and pitfalls of IS outsourcing, based on a dialectic view. It provides a balanced perspective, as it is based on a real case discussed by two individuals who were on opposing sides of the fence: one was an outsourcing survivor and was promoted, and the other was terminated due to decisions related to outsourcing.