IDEAS home Printed from https://ideas.repec.org/a/pal/jorsoc/v61y2010i2d10.1057_jors.2008.186.html
   My bibliography  Save this article

Manufacturing costs in serial production systems with rework

Author

Listed:
  • G C Hadjinicola

    (University of Cyprus)

Abstract

In this paper, we present a Markovian modelling framework that can describe any serial production system with rework. Each production stage is represented by a state in the Markov chain. Absorbing states indicate the events of scrapping a product at a production stage or the completion of the finished product. Generalizable formulae for the final absorption probabilities are derived that represent: (1) the probability that an unfinished product is scrapped at a certain production stage and (2) the yield of the system. We also derive various expected costs and quantities associated with all products ending in any absorbing state, as well as the equivalent costs and quantities for finished products. The applicability of our modelling framework is demonstrated in a real-life manufacturing environment in the food-packing industry.

Suggested Citation

  • 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.
    • Handle: RePEc:pal:jorsoc:v:61:y:2010:i:2:d:10.1057_jors.2008.186
    DOI: 10.1057/jors.2008.186
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1057/jors.2008.186
    File Function: Abstract
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1057/jors.2008.186?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Juhwen Hwang & Medini R. Singh, 1998. "Optimal Production Policies for Multi-Stage Systems with Setup Costs and Uncertain Capacities," Management Science, INFORMS, vol. 44(9), pages 1279-1294, September.
    2. Francesco Gaglioppa & Lisa A. Miller & Saif Benjaafar, 2008. "Multitask and Multistage Production Planning and Scheduling for Process Industries," Operations Research, INFORMS, vol. 56(4), pages 1010-1025, August.
    3. Kwang‐Fu Li, 1987. "Serial production lines with unreliable machines and limited repair," Naval Research Logistics (NRL), John Wiley & Sons, vol. 34(1), pages 101-108, February.
    4. Eric V. Denardo & Thomas Y. S. Lee, 1996. "Managing Uncertainty in a Serial Production Line," Operations Research, INFORMS, vol. 44(2), pages 382-392, April.
    5. Marshall L. Fisher & Christopher D. Ittner, 1999. "The Impact of Product Variety on Automobile Assembly Operations: Empirical Evidence and Simulation Analysis," Management Science, INFORMS, vol. 45(6), pages 771-786, June.
    6. Ram Akella & S. Rajagopalan & Medini R. Singh, 1992. "Part Dispatch in Random Yield Multistage Flexible Test Systems for Printed Circuit Boards," Operations Research, INFORMS, vol. 40(4), pages 776-789, August.
    7. Anne Spence Wein, 1992. "Random Yield, Rework and Scrap in a Multistage Batch Manufacturing Environment," Operations Research, INFORMS, vol. 40(3), pages 551-563, June.
    8. Abraham Grosfeld-Nir & Yigal Gerchak, 2002. "Multistage Production to Order with Rework Capability," Management Science, INFORMS, vol. 48(5), pages 652-664, May.
    9. Iftekhar A. Karimi, 1992. "Optimal Cycle Times in Multistage Serial Systems with Set-Up and Inventory Costs," Management Science, INFORMS, vol. 38(10), pages 1467-1481, October.
    10. Hau L. Lee, 1992. "Lot Sizing to Reduce Capacity Utilization in a Production Process with Defective Items, Process Corrections, and Rework," Management Science, INFORMS, vol. 38(9), pages 1314-1328, September.
    11. 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.
    12. Kevin B. Hendricks & John O. McClain, 1993. "The Output Process of Serial Production Lines of General Machines with Finite Buffers," Management Science, INFORMS, vol. 39(10), pages 1194-1201, October.
    13. D. Sarkar & W. I. Zangwill, 1992. "File and Work Transfers in Cyclic Queue Systems," Management Science, INFORMS, vol. 38(10), pages 1510-1523, October.
    14. Eric V. Denardo & Christopher S. Tang, 1992. "Linear Control of a Markov Production System," Operations Research, INFORMS, vol. 40(2), pages 259-278, April.
    15. Kut C. So & Christopher S. Tang, 1995. "Optimal Operating Policy for a Bottleneck with Random Rework," Management Science, INFORMS, vol. 41(4), pages 620-636, April.
    16. Christopher S. Tang, 1990. "The Impact of Uncertainty on a Production Line," Management Science, INFORMS, vol. 36(12), pages 1518-1531, December.
    17. Kevin B. Hendricks, 1992. "The Output Processes of Serial Production Lines of Exponential Machines with Finite Buffers," Operations Research, INFORMS, vol. 40(6), pages 1139-1147, December.
    18. Hau L. Lee & Candace Arai Yano, 1988. "Production Control in Multistage Systems with Variable Yield Losses," Operations Research, INFORMS, vol. 36(2), pages 269-278, April.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Cheng-Ta Yeh & Louis Cheng-Lu Yeng & Yi-Kuei Lin & Yu-Lun Chao, 2024. "A hybrid method to solve reliability-cost-oriented bi-objective machine configuration problem for a flow shop system," Annals of Operations Research, Springer, vol. 340(1), pages 643-669, September.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    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. L. Gong & H. Matsuo, 1997. "Control Policy for a Manufacturing System with Random Yield and Rework," Journal of Optimization Theory and Applications, Springer, vol. 95(1), pages 149-175, October.
    3. Sonntag, Danja & Kiesmüller, Gudrun P., 2018. "Disposal versus rework – Inventory control in a production system with random yield," European Journal of Operational Research, Elsevier, vol. 267(1), pages 138-149.
    4. M-C Wu & L-C Huang & H-M Hsu & T-S Su, 2011. "Multiple lot-sizing decisions in a two-stage production with an interrupted geometric yield and non-rigid demand," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 62(6), pages 1075-1084, June.
    5. 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.
    6. Juhwen Hwang & Medini R. Singh, 1998. "Optimal Production Policies for Multi-Stage Systems with Setup Costs and Uncertain Capacities," Management Science, INFORMS, vol. 44(9), pages 1279-1294, September.
    7. Scott Webster & Z. Kevin Weng, 2001. "Improving Repetitive Manufacturing Systems: Model and Insights," Operations Research, INFORMS, vol. 49(1), pages 99-106, February.
    8. Kim, Ilhyung & Tang, Christopher S., 1997. "Lead time and response time in a pull production control system," European Journal of Operational Research, Elsevier, vol. 101(3), pages 474-485, September.
    9. Chen, Chin-Tai & Yuan, John, 2004. "Transient throughput analysis for a series type system of machines in terms of alternating renewal processes," European Journal of Operational Research, Elsevier, vol. 155(1), pages 178-197, May.
    10. Tan, Baris, 1997. "Variance of the throughput of an N-station production line with no intermediate buffers and time dependent failures," European Journal of Operational Research, Elsevier, vol. 101(3), pages 560-576, September.
    11. Jinfa Chen & David D. Yao & Shaohui Zheng, 2001. "Optimal Replenishment and Rework with Multiple Unreliable Supply Sources," Operations Research, INFORMS, vol. 49(3), pages 430-443, June.
    12. Lutz, Christian M. & Roscoe Davis, K. & Sun, Minghe, 1998. "Determining buffer location and size in production lines using tabu search," European Journal of Operational Research, Elsevier, vol. 106(2-3), pages 301-316, April.
    13. Qing Li & Shaohui Zheng, 2006. "Joint Inventory Replenishment and Pricing Control for Systems with Uncertain Yield and Demand," Operations Research, INFORMS, vol. 54(4), pages 696-705, August.
    14. Papadopoulos, H. T., 1998. "An approximate method for calculating the mean sojourn time of K-station production lines with no intermediate buffers," International Journal of Production Economics, Elsevier, vol. 54(3), pages 297-305, May.
    15. Chiu, Yuan-Shyi Peter & Chiu, Victoria & Lin, Hong-Dar & Chang, Huei-Hsin, 2019. "Meeting multiproduct demand with a hybrid inventory replenishment system featuring quality reassurance," Operations Research Perspectives, Elsevier, vol. 6(C).
    16. Flapper, Simme Douwe P. & Teunter, Ruud H., 2004. "Logistic planning of rework with deteriorating work-in-process," International Journal of Production Economics, Elsevier, vol. 88(1), pages 51-59, March.
    17. Qi Feng & Zhongjie Ma & Zhaofang Mao & J. George Shanthikumar, 2021. "Multi‐Stage Supply Chain with Production Uncertainty," Production and Operations Management, Production and Operations Management Society, vol. 30(4), pages 921-940, April.
    18. Grosfeld-Nir, Abraham & Robinson, Lawrence W., 1995. "Production to order on a two machine line with random yields and rigid demand," European Journal of Operational Research, Elsevier, vol. 80(2), pages 264-276, January.
    19. Weng, Z. Kevin, 1998. "Managing production with flexible capacity deployment for serial multi-stage manufacturing systems," European Journal of Operational Research, Elsevier, vol. 109(3), pages 587-598, September.
    20. Awi Federgruen & Nan Yang, 2014. "Infinite Horizon Strategies for Replenishment Systems with a General Pool of Suppliers," Operations Research, INFORMS, vol. 62(1), pages 141-159, February.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:jorsoc:v:61:y:2010:i:2:d:10.1057_jors.2008.186. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave-journals.com/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.