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Impact of safety factors and setup time reduction in a two-echelon supply chain management

Title
Impact of safety factors and setup time reduction in a two-echelon supply chain management
Author
Sarkar, Biswajit
Keywords
Supply chain management; Stochastic demand; Setup time reduction; Quality improvement; Transportation crashing cost
Issue Date
2019-02
Publisher
PERGAMON-ELSEVIER SCIENCE LTD
Citation
ROBOTICS AND COMPUTER-INTEGRATED MANUFACTURING, v. 55, No. Special SI, Page. 250-258
Abstract
A two-echelon supply chain model is formulated to reduce lead time and setup time to obtain their impacts on the expected total cost when lead time demand is stochastic in nature. Two different safety factors are utilized to avoid shortages even though the system contains backorder. The lead time is lot size dependent and consists of production time as well as setup time. It does not follow any particular distribution as only mean and standard deviation are known to us. A distribution free approach is used here to handle this situation. Quality improvement and safety factor are related issues to make an impact in the model as they are directly related to the customer satisfaction. The unit production cost is variable and dependent on production rate. An analytical procedure is derived to investigate the effects of reducing lead time, setup time crashing cost, and transportation crashing cost. Some numerical examples are illustrated to test the model. Sensitivity analysis and managerial insights are given to show the applicability of the model.
URI
https://www.sciencedirect.com/science/article/pii/S0736584517302156https://repository.hanyang.ac.kr/handle/20.500.11754/112446
ISSN
0736-5845; 1879-2537
DOI
10.1016/j.rcim.2018.05.001
Appears in Collections:
COLLEGE OF ENGINEERING SCIENCES[E](공학대학) > INDUSTRIAL AND MANAGEMENT ENGINEERING(산업경영공학과) > Articles
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