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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Linear nonlinear wip clearing in supply chain operations planning

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


Linear nonlinear wip clearing in supply chain operations planning

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


Clearing functions in the literature

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


Three different wip clearing assumptions

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


Supply chain operations planning scop

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


Linear nonlinear wip clearing in supply chain operations planning

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:


Linear nonlinear wip clearing in supply chain operations planning

5th Int'l Conference on

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

Experimental design

STN

L=4

LTN

TL


Linear nonlinear wip clearing in supply chain operations planning

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


Linear nonlinear wip clearing in supply chain operations planning

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


Conclusions

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.


Linear nonlinear wip clearing in supply chain operations planning

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


Linear nonlinear wip clearing in supply chain operations planning

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


Linear nonlinear wip clearing in supply chain operations planning

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.


Linear nonlinear wip clearing in supply chain operations planning

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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