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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

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

slide2

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

slide6

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:

slide7

5th Int'l Conference on

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

Experimental design

STN

L=4

LTN

TL

slide8

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

slide9

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.
slide11

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

slide12

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

slide13

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.
slide14

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.