World Academy of Science, Engineering and Technology
Published February 6, 2014 | Version 9997803
Journal article Open

A Novel Model for Simultaneously Minimising Costs and Risks in Just-in-Time Systems Using Multi-Backup Suppliers: Part 2- Results

Description

This paper implements the inventory model developed in the first part of this paper in a simplified problem to simultaneously reduce costs and risks in JIT systems. This model is developed to ascertain an optimal ordering strategy for procuring raw materials by using regular multi-external and local backup suppliers to reduce the total cost of the products, and at the same time to reduce the risks arising from this cost reduction within production systems. A comparison between the cost of using the JIT system and using the proposed inventory model shows the superiority of the use of the inventory model.

Files

9997803.pdf

Files (200.9 kB)

Name Size Download all
md5:c16761e21a7ba6fa5ee88b3207e51e55
200.9 kB Preview Download

Additional details

References

  • C.Caneland B. M.Khumawala, "International facilities location: a heuristic procedure for the dynamic uncapacitated problem," International Journal of Production Research, vol. 39, pp. 3975-4000, 2001.
  • F.Abdullah, "Lean Manufacturing Tools and Techniques in the Process Industry with a Focus on Steel," PhD thesis, University of Pittsburgh, 2003.
  • A.Badurdeen, "What is Lean Manufacturing?," 2006,[Online], Available:http://www.learnleanblog.com/2006/12/what-is-lean-manufacturing.html [Accessed 07.11.2011].
  • Y.Monden, Japanese Cost Management. World Scientific, 2000.
  • T. C. E. Chengand S.Podolsky, Just-in-time manufacturing: an introduction. New York, Chapman & Hall, 1996.
  • R. A.Hokoma, M. K.Khan and K.Hussain, "The Present Status of Quality and Manufacturing Management Techniques and Philosophies within the Libyan Iron and Steel Industry,"TQM Journal, vol. 22, no. 2, pp. 209-221, 2010.
  • Z. X. Chen andB. R. Sarker, "Multi-vendor integrated procurement-production system under shared transportation and just-in-time delivery system," The Journal of the Operational Research Society, vol. 61, pp. 1654-1666, 2010.
  • Y.Li, K. F.Man, K. S.Tang, S. Kwong and W. H.Ip, "Genetic algorithm to production planning and scheduling problems for manufacturing systems," Production Planning & Control, vol. 11, no. 5, pp. 443-458 , 2000.
  • T.Tourki, "Implementation of Lean within the Cement Industry," PhD thesis, De Montfort University, 2010. [10] J. S. Yang and J. C. H.Pan, "Just-in-Time Purchasing: an Integrated Inventory Model Involving Deterministic Variable Lead Time and Quality Improvement Investment," International Journal of Production Research, vol. 42, no. 5, pp. 853-863, 2004. [11] Y. H.Yang, "Setup Cost Improvement in Just-in-Time Production Using Profit Sharing,"Production Planning & Control, vol. 12, no. 4, pp. 345-352, 2001. [12] B.Fahimnia, L.Luongand R.Marian,"An integrated model for the optimisation of a two-echelon supply network,"Journal of Achievements in Materials and Manufacturing Engineering, vol. 31, pp. 477-484, 2008. [13] C. J. Vidal and M.Goetschalckx, "A Global Supply Chain Model with Transfer Pricing and Transportation Cost Allocation,"European Journal of Operational Research, vol. 129, pp. 134-158, 2001. [14] S. K.Kumar, M. K. Tiwari and R. F.Babiceanu, "Minimisation of Supply Chain Cost with Embedded Risk Using Computational Intelligence Approaches," International Journal of Production Research, vol. 48, no. 13, pp. 3717-3739, 2010. [15] H. M. S.Lababidi, M. A.Ahmed, I. M. Alatiqi and A. F.AL-Enzi, "Optimizing the Supply Chain of a Petrochemical Company under Uncertain Operating and Economic Conditions,"Industrial & Engineering Chemistry Research, vol. 43, no.1, pp. 63-73, 2004. [16] R. A.Sarker and L. R.Khan, "An Optimal Batch Size for a Production System Operating under Periodic Delivery Policy,"Computers & Industrial Engineering, vol. 37, pp. 711-730, 1999. [17] B. Tomlin, "Disruption-Management Strategies for Short Life-Cycle Products," Naval Research Logistics, vol. 56, pp. 318-347, 2009. [18] D.Simchi-Levi, L. Snyder and M. Watson, "Strategies for Uncertain Times. Supply chain Management Review," 2002, [Online]. Available: http://www.lehigh.edu/~lvs2/Papers/SCMR.pdf [Accessed 06 November 2012]. [19] A. A.Gaivoronski, G. M.Sechi and P.Zuddas, "Balancing Cost-Risk in Management Optimization of Water Resource Systems under Uncertainty,"Physics and Chemistry of the Earth, vol. 42-44, pp. 98-107, 2012. [20] F. El Dabee, R. Marian and Y. Amer, "An Optimisation Model for a Simultaneous Cost-Risk Reduction in Just-in-Time Systems," in the 11th Global Congress on Manufacturing and Management, GCMM2012, Auckland, New Zealand, 2012, pp. 190-201. [21] D. Bogataj and M.Bogataj, "Measuring the Supply Chain Risk and Vulnerability in Frequency Space,"International Journal of Production Economics, vol. 108, no. 1, pp. 291-301, 2007.