Linear nonlinear wip clearing in supply chain operations planning
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5th Int'l Conference on " Analysis of Manufacturing Systems – Production Management ", Zakynthos Island, Greece. Linear & Nonlinear WIP Clearing in Supply Chain Operations Planning. Bar ış Selçuk, Jan C. Fransoo and A. (Ton) G. De Kok. 5th Int'l Conference on

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Linear & Nonlinear WIP Clearing in Supply Chain Operations Planning

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5th Int'l Conference on

"Analysis of Manufacturing Systems – Production Management", Zakynthos Island, Greece

Linear & Nonlinear WIP Clearing in Supply Chain Operations Planning

Barış Selçuk, Jan C. Fransoo and A. (Ton) G. De Kok


5th Int'l Conference on

"Analysis of Manufacturing Systems – Production Management", Zakynthos Island, Greece

SCOP

OPU1

OPU2

OPU3

I0

PU1

I1

PU2

I2

PU3

I3

Customers

L1

L2

L3


Fixed Lead Time

Fixed Capacity

μ

Combined

Saturating

α

5th Int'l Conference on

"Analysis of Manufacturing Systems – Production Management", Zakynthos Island, Greece

Clearing functions in the literature

Clearing Function: The mathematical representation of expected throughput over a time period as a function of the work-in-process (WIP) over that period.

  • Graves (1986), "Fixed lead time"

  • Karmarkar (1989), "Saturating"

    • Zäpfel and Missbauer (1993), Missbauer (2002)

    • Asmundsson et.al. (2005)

  • Billington et.al. (1983), Hackman and Leachman (1989), "Combined"

Throughput

WIP


5th Int'l Conference on

"Analysis of Manufacturing Systems – Production Management", Zakynthos Island, Greece

Three different WIP clearing assumptions

Traditional Linear (TL):

Long Term Nonlinear (LTN):

Short Term Nonlinear (STN):

SCOP

OPU

R

PU, Exp(μ)

F

Customers


5th Int'l Conference on

"Analysis of Manufacturing Systems – Production Management", Zakynthos Island, Greece

Supply Chain Operations Planning (SCOP)

SCOP

Demand forecasts

OPU

R

PU

F

Customers


5th Int'l Conference on

"Analysis of Manufacturing Systems – Production Management", Zakynthos Island, Greece

Operations Planning Unit (OPU)

SCOP

Demand forecasts

OPU

R

PU

F

Customers

Simple:

Advanced:


5th Int'l Conference on

"Analysis of Manufacturing Systems – Production Management", Zakynthos Island, Greece

Experimental design

STN

L=4

LTN

TL


5th Int'l Conference on

"Analysis of Manufacturing Systems – Production Management", Zakynthos Island, Greece

Results: Costs

Utilization: 90%, Operational planning: Simple

Utilization: 80%, Operational planning: Simple


5th Int'l Conference on

"Analysis of Manufacturing Systems – Production Management", Zakynthos Island, Greece

Results: Costs

Utilization: 90%, Operational planning: Advanced

Utilization: 80%, Operational planning: Advanced


5th Int'l Conference on

"Analysis of Manufacturing Systems – Production Management", Zakynthos Island, Greece

Results: Costs

Conclusions:

  • STN is the best choice for a lower total cost. STN provides lowest WIP while indifferent in echelon inventory for the majority of the cases.

  • For modelling the short term behaviour in the shop STN clearing function is favorable to TL and LTN clearing functions. SCOP model has a better anticipation of the operational dynamics of the manufacturer in the near future.

  • Advanced operational planning is better off only for STN, but not for TL and LTN.


5th Int'l Conference on

"Analysis of Manufacturing Systems – Production Management", Zakynthos Island, Greece

Results: Delivery performance

Utilization: 90%, Operational planning: Simple

Utilization: 80%, Operational planning: Simple


5th Int'l Conference on

"Analysis of Manufacturing Systems – Production Management", Zakynthos Island, Greece

Results: Delivery performance

Utilization: 90%, Operational planning: Advanced

Utilization: 80%, Operational planning: Advanced


5th Int'l Conference on

"Analysis of Manufacturing Systems – Production Management", Zakynthos Island, Greece

Results: Delivery performance

Conclusions:

  • For simple operational planning function, STN provides the best delivery performance while TL provides the worst.

  • For advanced operational planning function, TL provides the best delivery performance while STN provides the worst.


5th Int'l Conference on

"Analysis of Manufacturing Systems – Production Management", Zakynthos Island, Greece

Future Research

  • Development of models and providing analysis for multi-stage manufacturing.

  • Development of a lead time adaptive approach for supply chain operations planning.

    • Single-stage manufacturer and distributor.

    • Multi-stage manufacturing.


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