Title: Development of manufacturing - distribution plan considering quality cost

Authors: G. Gokilakrishnan; P. Ashoka Varthanan

Addresses: Department of Mechanical Engineering, Sri Eshwar College of Engineering, Coimbatore 641202, Tamil Nadu, India ' Department of Mechanical Engineering, Sri Krishna College of Engineering and Technology, Coimbatore 641008, Tamil Nadu, India

Abstract: In the current complex business world, making decisions on the manufacturing-distribution problem is a tedious task to the supply chain managers. Solving mathematical model with many entities requires a suitable algorithm for optimum results which increase the profitability of any industrial activity. Any model without considering the percentage of rejection in a particular plant, will not supply the right quality and quantity of products to the customers. Here, a mathematical model is developed by considering the quality cost in addition to normal time manufacturing cost, subcontracting cost, transportation cost, overtime manufacturing cost, holding cost, cost of hiring, and cost of firing. Mixed integer linear programming (MILP) model is developed and solved using a modified heuristic based discrete particle swarm algorithm (DPSA) which generates the manufacturing-distribution plan in order to bring the total cost minimum for the bearing industry under study. The normal time manufacturing loss and the overtime loss in terms of product quantity and cost are calculated and manufactured.

Keywords: quality cost; optimisation; manufacturing-distribution plan; supply chain.

DOI: 10.1504/IJENM.2019.103157

International Journal of Enterprise Network Management, 2019 Vol.10 No.3/4, pp.280 - 304

Received: 11 Dec 2018
Accepted: 24 Mar 2019

Published online: 21 Oct 2019 *

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