Title: Production planning of parallel resources considering yields, failures and production costs

Authors: Alex J. Ruiz-Torres; Jose H. Ablanedo-Rosas; Nelson R. Alomoto Bansui; Farzad Mahmoodi; Amy Z. Zeng

Addresses: Facultad de Administración de Empresas, Universidad de Puerto Rico – Rio Piedras, San Juan, PR 00931-3332, USA ' Department of Information and Decision Sciences, College of Business Administration, University of Texas at El Paso, 500 West University Avenue, El Paso, TX 79968, USA ' Facultad de Ciencias Administrativas, Escuela Politécnica Nacional, Quito, 17-01-2759, Ecuador ' School of Business, Clarkson University, Potsdam, NY 13699-5790, USA ' School of Business, Worcester Polytechnic Institute, Worcester, MA 01609, USA

Abstract: Effective production planning of manufacturing networks requires careful consideration of several factors, including capacity, production, yields, and resource failure costs. This is particularly critical in highly variable environments where multiple resource types are available during the planning and implementation processes. This paper presents a model to aid the decision makers to determine what production resources to select, and the amount of production to allocate to each resource in order to minimise the total costs. The model considers costs associated with the production resources and customer related costs such as late delivery and loss due to undelivered units. Sensitivity analysis is conducted to examine the robustness of the optimal solution with respect to late delivery costs and loss costs. The results demonstrate the usefulness of the model by providing insights into the interactions among the cost and resource variables.

Keywords: manufacturing networks; supply chain management; SCM; risk modelling; yield modelling; production planning; parallel resources; resource failures; production costs; production resources; resource selection; resource allocation.

DOI: 10.1504/IJAMS.2014.060889

International Journal of Applied Management Science, 2014 Vol.6 No.2, pp.99 - 117

Published online: 02 Jul 2014 *

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