Measuring the impact of a delay buffer on quality costs with an unreliable production process
Article Abstract:
A study is conducted to examine an unreliable single-item machine that changes from a desirable or in-control condition to an undesirable or out-of-control condition after a random period of time. This shift from desirable to undesirable is determined through inspection and testing of the last m units generated from each batch of n items, m and n being decision variables. A delay buffer is tagged right after the unreliable process, delaying transfer of items from the unreliable machine to other processes in the production system. This allows inspection of previously uninspected items in the delay buffer when the machine is found to shift to an out-of-control state. As a result, the buffer minimizes expected rework and penalty costs downstream when there is a shift in process. A model that employs the aforementioned approach is developed.
Publication Name: Management Science
Subject: Business, general
ISSN: 0025-1909
Year: 1995
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Analysis of a production/inventory system subject to random disruptions
Article Abstract:
The effects of random disruptions in a bottleneck production facility are examined. This study assumes the existence of uniform demand and production rates, exponential time between breakdowns, regular restoration times, positive setup cost or setup time or both, and backordered excess demand. An (s, S) policy is developed as the production control policy for the system and expressions were generated for the operating characteristics of the system. A numerical experiment indicated that setup cost reduction in reliable production systems can more effectively minimize total operating cost while setup cost reduction in unreliable production systems generate higher optimal safety stock level. Moreover, because they are vulnerable to disruptions, just-in-time systems require the accurate measurement of the safety stock levels.
Publication Name: Management Science
Subject: Business, general
ISSN: 0025-1909
Year: 1997
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An inventory model of immediate and delayed delivery
Article Abstract:
An inventory model is developed that describes inventory cost of carrying one good as a function of the existence of another good available for delayed delivery. Given an out-of-stock situation for the first good, customers have three options: seek the good from a competitor, accept late delivery of the first good, or place anorder for the second good. The model indicates that profit maximization for thedistributor involves setting a lower price for the second delayed-delivery goodsuch that consumers will be encouraged to switch to it from the first good. This strategy is based on the rationale that out-of-stock situations are rendered less costly with switching behavior, thereby allowing the distributor to hold smaller inventories.
Publication Name: Management Science
Subject: Business, general
ISSN: 0025-1909
Year: 1993
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