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Production control problem integrating overhaul and subcontracting strategies for a quality deteriorating manufacturing system

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  • Rivera-Gómez, Héctor
  • Gharbi, Ali
  • Kenné, Jean-Pierre
  • Montaño-Arango, Oscar
  • Hernandez-Gress, Eva Selene

Abstract

We study an unreliable deteriorating manufacturing system that produces conforming and non-conforming parts to satisfy a constant demand product rate. The manufacturing system is comprised of a failure-prone machine. Due to the combined effect of random availability variations and deterioration, the system is not able to fulfill long-term product demand. In particular, when finished goods inventory is positive, clients demand are fulfilled on-time and without delay. When backlog exists, subcontracting options are available at a higher cost to supplement the limited production capacity of the manufacturing system. The effect of deterioration is observed mainly in the quality of the parts produced, since the rate of defectives increases as the machines deteriorate. Overhaul activities can be conducted to mitigate the effect of deterioration. We propose a joint feedback control policy based on a stochastic dynamic programming formulation which aims simultaneously to determine the production and overhaul rates, and the rate at which subcontractors are requested. The proposed joint control policy minimizes the total cost, including the inventory, backlog, repair, overhaul, defectives, production and subcontracting costs, over an infinite planning horizon. To determine the optimal control parameters, we adopt a numerical scheme to solve the optimality equations and a numerical example is presented as an illustration of the approach. The structure of the joint control policy is validated through an extensive sensitivity analysis.

Suggested Citation

  • Rivera-Gómez, Héctor & Gharbi, Ali & Kenné, Jean-Pierre & Montaño-Arango, Oscar & Hernandez-Gress, Eva Selene, 2016. "Production control problem integrating overhaul and subcontracting strategies for a quality deteriorating manufacturing system," International Journal of Production Economics, Elsevier, vol. 171(P1), pages 134-150.
  • Handle: RePEc:eee:proeco:v:171:y:2016:i:p1:p:134-150
    DOI: 10.1016/j.ijpe.2015.10.008
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    References listed on IDEAS

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    Cited by:

    1. Polotski, V. & Kenne, J.-P. & Gharbi, A., 2019. "Joint production and maintenance optimization in flexible hybrid Manufacturing–Remanufacturing systems under age-dependent deterioration," International Journal of Production Economics, Elsevier, vol. 216(C), pages 239-254.
    2. Vladimir Polotski & Jean-Pierre Kenne & Ali Gharbi, 2019. "Optimal production and corrective maintenance in a failure-prone manufacturing system under variable demand," Flexible Services and Manufacturing Journal, Springer, vol. 31(4), pages 894-925, December.
    3. Dhahri, Akrem & Gharbi, Ali & Ouhimmou, Mustapha, 2022. "Integrated production-transshipment control policy for a two-location unreliable manufacturing system," International Journal of Production Economics, Elsevier, vol. 247(C).
    4. Barış Tan, 2019. "Production Control with Price, Cost, and Demand Uncertainty," OR Spectrum: Quantitative Approaches in Management, Springer;Gesellschaft für Operations Research e.V., vol. 41(4), pages 1057-1085, December.
    5. Kenné, Jean-Pierre & Gharbi, Ali, 2018. "Production and replacement policies for a deteriorating manufacturing system under random demand and qualityAuthor-Name: Ouaret, Samir," European Journal of Operational Research, Elsevier, vol. 264(2), pages 623-636.
    6. Wakiru, James M. & Pintelon, Liliane & Muchiri, Peter N. & Chemweno, Peter K., 2019. "A simulation-based optimization approach evaluating maintenance and spare parts demand interaction effects," International Journal of Production Economics, Elsevier, vol. 208(C), pages 329-342.
    7. Rivera-Gómez, Héctor & Gharbi, Ali & Kenné, Jean-Pierre & Montaño-Arango, Oscar & Hernández-Gress, Eva Selene, 2018. "Subcontracting strategies with production and maintenance policies for a manufacturing system subject to progressive deterioration," International Journal of Production Economics, Elsevier, vol. 200(C), pages 103-118.
    8. Xu, Jianjun & Serrano, Alejandro & Lin, Bing, 2017. "Optimal production and rationing policy of two-stage tandem production system," International Journal of Production Economics, Elsevier, vol. 185(C), pages 100-112.
    9. Xiufang Zhang & Tangbin Xia & Ershun Pan & Yuqing Li, 2022. "Integrated optimization on production scheduling and imperfect preventive maintenance considering multi-degradation and learning-forgetting effects," Flexible Services and Manufacturing Journal, Springer, vol. 34(2), pages 451-482, June.
    10. Assid, M. & Gharbi, A. & Hajji, A., 2020. "Production control of failure-prone manufacturing-remanufacturing systems using mixed dedicated and shared facilities," International Journal of Production Economics, Elsevier, vol. 224(C).
    11. Ait-El-Cadi, Abdessamad & Gharbi, Ali & Dhouib, Karem & Artiba, Abdelhakim, 2021. "Integrated production, maintenance and quality control policy for unreliable manufacturing systems under dynamic inspection," International Journal of Production Economics, Elsevier, vol. 236(C).
    12. Mohammed Haoues & Mohammed Dahane & Nadia Kenza Mouss, 2019. "Outsourcing optimization in two-echelon supply chain network under integrated production-maintenance constraints," Journal of Intelligent Manufacturing, Springer, vol. 30(2), pages 701-725, February.

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