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Input Control for Serial Production Lines Consisting of Processing and Assembly Operations with Random Yields

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  • Hau L. Lee

    (Stanford University, Stanford, California)

Abstract

This paper deals with a serial production line where each of the stages can be either a processing or an assembly stage. A processing stage processes outputs from an upstream stage and transforms them into inputs for the downstream stage. Each processing stage is subject to yield losses. At an assembly stage, a batch of identical input components is processed and the nondefective components are then combined with the output from the upstream stage. The processing operation for the input component is imperfect. For such a system, we characterize the form of the optimal policy for input quantity at each stage in the production line, when stochastically proportional yield is assumed at each stage, i.e., the distribution of the yield fraction is assumed to be independent of the lot size. The optimal policy exhibits some form of a critical number policy. For production lines consisting of assembly stages only, the critical numbers can be computed easily. When yields are of the “exponential” type, the critical number policy is still optimal, although there are interesting differences in the policies for the different types of yield characterizations.

Suggested Citation

  • Hau L. Lee, 1996. "Input Control for Serial Production Lines Consisting of Processing and Assembly Operations with Random Yields," Operations Research, INFORMS, vol. 44(3), pages 464-468, June.
  • Handle: RePEc:inm:oropre:v:44:y:1996:i:3:p:464-468
    DOI: 10.1287/opre.44.3.464
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    Cited by:

    1. Hadjinicola, George C. & Soteriou, Andreas C., 2003. "Reducing the cost of defects in multistage production systems: A budget allocation perspective," European Journal of Operational Research, Elsevier, vol. 145(3), pages 621-634, March.
    2. Jim (Junmin) Shi & Xiaohang Yue & Yao Zhao, 2014. "Operations sequencing for a multi‐stage production inventory system," Naval Research Logistics (NRL), John Wiley & Sons, vol. 61(2), pages 144-154, March.
    3. G C Hadjinicola, 2010. "Manufacturing costs in serial production systems with rework," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 61(2), pages 342-351, February.
    4. Awi Federgruen & Nan Yang, 2008. "Selecting a Portfolio of Suppliers Under Demand and Supply Risks," Operations Research, INFORMS, vol. 56(4), pages 916-936, August.

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