Optimal Machine Stopping Time and Ordering Cycle for Parts to Minimize the Total Cost of a Supply Chain

Cun Rong Li,Xiaohui Cao,Bhaba R Sarker

doi:10.1109/access.2021.3079281

Abstract

Many parts or components in a facility are sometime vulnerable to failure causing downtime and production loss. So, in order to decrease the downtime, parts of the same type that follow the same lifespan distribution need to be replaced at least once to minimize the cost of unscheduled labor and the damages to the products. A decision on replacing all such vulnerable parts decreases the total cost including penalty cost, purchasing cost and holding cost. Different preempt times of a machine result in different purchasing quantity, procurement cost and carrying costs. So, a rational decision of allowable stopping time of a machine and order cycle for vulnerable parts jointly minimizes the total cost of supply chain. This study proposes a novel model to minimize the total cost for the vulnerable parts which have joint influence on machine performance. An integrated nonlinear cost model developed here is optimally solved and tested with several different distributions. Strong results are propounded to support the proposed model in terms of manufacturing time and system cost.

Highlights

Nowadays, with the improvement of people’s expectation of products and services, the market competition is more and more fierce
Procurement policy is tightly related to the actual requirement of a production system or supply chain of an enterprise
This paper studies the replacement strategy of vulnerable parts, which is necessary to the normal operation of a machine

Summary

INTRODUCTION

With the improvement of people’s expectation of products and services, the market competition is more and more fierce. Considering the maximum stopping time of a machine is jointly determined by multiple vulnerable parts, this paper proposes a novel lifespan estimation method and a cost assessment model (CEM) to get an optimal strategy through algorithm, after that it got the best lifespan for the part. This study proposes a novel model to minimize the total cost (holding, penalty, purchasing and fixed replenishing cost) for the vulnerable parts which have joint influence on machine performance. It is a tradeoff situation on letting the parts to fail or when to stop the machine to change the parts instead of parts to fail—which is the main issue of the current research directed to an economic decision-making process. In other words, according to the research of the predetermined distribution of multiple vulnerable parts, this manuscript established a procurement cost evaluation model to minimize the total cost

OPTIMAL COST ESTIMATION MODELING

MINIMUM TOTAL COST

PROBLEM DEFINITION

CASE STUDY

Findings

CONCLUSIONS