Manufacturing runtime problem with an expedited fabrication rate, random failures, and scrap

Abstract

When operating in highly competitive business environments, contemporary manufacturing firms must persistently find ways to fulfill timely orders with quality ensured merchandise, manage the unanticipated fabrication disruptions, and minimize total operating expenses. To address the aforementioned concerns, this study explores the optimal runtime decision for a manufacturing system featuring an expedited fabrication rate, random equipment failures, and scrap. Specifically, the proposed study considers an expedited rate that is linked to higher setup and unit costs. The fabrication process is subject to random failure and scrap rates. The failure instance follows a Poisson distribution, is repaired right away, and the fabrication of interrupted batch resumes when the equipment is restored. The defective goods are identified and scrapped. Mathematical modeling and optimization method are used to find the total system cost and the optimal runtime of the problem. The applicability and sensitivity analyses of research outcome are illustrated through a numerical example. Diverse critical information regarding the individual/joint impacts of variations in stochastic time-to-failure, expedited rate, and random scrap on the optimal runtime decision, total system expenses, different cost components, and machine utilization, can now be revealed to assist in in-depth problem analyses and decision makings.

Keywords

• Production planning
• Manufacturing runtime decision
• Expedited fabrication rate
• Stochastic failure
• Random scrap