The joint influence of quality assurance and postponement on a hybrid multi-item manufacturing-delivery decision-making

Abstract

The present research explores the collective influence of quality assurance and postponement on a hybrid multiproduct replenishing-delivery decision-making. Assume the required multiproduct has a standard (common) component, and our replenishing-delivery model has incorporated a two-phase postponement strategy. The first phase makes all standard components and hires an external supplier to partially provide the required parts to cut short the needed uptime. In contrast, the second phase fabricates the finished multiproduct in sequence. To ensure the desired merchandise quality, we apply a quality-assurance action to the in-house processes to screen and remove scrap items and rework the repairable defects in both stages. Upon completing each merchandise, these products are transported to the customer in n fixed-quantity shipment in fixed-time intervals. We employ math modeling and formulating approaches to gain the overall supply-chain operating expenses comprising subcontracting, fabricating, stock holding, transportation, and customer holding costs. By minimizing system operating expenses, this research determines the optimal replenishing-delivery policy. Lastly, we give a numerical example to demonstrate our study’s applicability and usefulness/capability for facilitating managerial decision-making.