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Linear & Nonlinear WIP Clearing in Supply Chain Operations Planning

5th Int'l Conference on " Analysis of Manufacturing Systems – Production Management ", Zakynthos Island, Greece. Linear & Nonlinear WIP Clearing in Supply Chain Operations Planning. Bar ış Selçuk, Jan C. Fransoo and A. (Ton) G. De Kok. 5th Int'l Conference on

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Linear & Nonlinear WIP Clearing in Supply Chain Operations Planning

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  1. 5th Int'l Conference on "Analysis of Manufacturing Systems – Production Management", Zakynthos Island, Greece Linear & Nonlinear WIP Clearing in Supply Chain Operations Planning Barış Selçuk, Jan C. Fransoo and A. (Ton) G. De Kok

  2. 5th Int'l Conference on "Analysis of Manufacturing Systems – Production Management", Zakynthos Island, Greece SCOP OPU1 OPU2 OPU3 I0 PU1 I1 PU2 I2 PU3 I3 Customers L1 L2 L3

  3. Fixed Lead Time Fixed Capacity μ Combined Saturating α 5th Int'l Conference on "Analysis of Manufacturing Systems – Production Management", Zakynthos Island, Greece Clearing functions in the literature Clearing Function: The mathematical representation of expected throughput over a time period as a function of the work-in-process (WIP) over that period. • Graves (1986), "Fixed lead time" • Karmarkar (1989), "Saturating" • Zäpfel and Missbauer (1993), Missbauer (2002) • Asmundsson et.al. (2005) • Billington et.al. (1983), Hackman and Leachman (1989), "Combined" Throughput WIP

  4. 5th Int'l Conference on "Analysis of Manufacturing Systems – Production Management", Zakynthos Island, Greece Three different WIP clearing assumptions Traditional Linear (TL): Long Term Nonlinear (LTN): Short Term Nonlinear (STN): SCOP OPU R PU, Exp(μ) F Customers

  5. 5th Int'l Conference on "Analysis of Manufacturing Systems – Production Management", Zakynthos Island, Greece Supply Chain Operations Planning (SCOP) SCOP Demand forecasts OPU R PU F Customers

  6. 5th Int'l Conference on "Analysis of Manufacturing Systems – Production Management", Zakynthos Island, Greece Operations Planning Unit (OPU) SCOP Demand forecasts OPU R PU F Customers Simple: Advanced:

  7. 5th Int'l Conference on "Analysis of Manufacturing Systems – Production Management", Zakynthos Island, Greece Experimental design STN L=4 LTN TL

  8. 5th Int'l Conference on "Analysis of Manufacturing Systems – Production Management", Zakynthos Island, Greece Results: Costs Utilization: 90%, Operational planning: Simple Utilization: 80%, Operational planning: Simple

  9. 5th Int'l Conference on "Analysis of Manufacturing Systems – Production Management", Zakynthos Island, Greece Results: Costs Utilization: 90%, Operational planning: Advanced Utilization: 80%, Operational planning: Advanced

  10. 5th Int'l Conference on "Analysis of Manufacturing Systems – Production Management", Zakynthos Island, Greece Results: Costs Conclusions: • STN is the best choice for a lower total cost. STN provides lowest WIP while indifferent in echelon inventory for the majority of the cases. • For modelling the short term behaviour in the shop STN clearing function is favorable to TL and LTN clearing functions. SCOP model has a better anticipation of the operational dynamics of the manufacturer in the near future. • Advanced operational planning is better off only for STN, but not for TL and LTN.

  11. 5th Int'l Conference on "Analysis of Manufacturing Systems – Production Management", Zakynthos Island, Greece Results: Delivery performance Utilization: 90%, Operational planning: Simple Utilization: 80%, Operational planning: Simple

  12. 5th Int'l Conference on "Analysis of Manufacturing Systems – Production Management", Zakynthos Island, Greece Results: Delivery performance Utilization: 90%, Operational planning: Advanced Utilization: 80%, Operational planning: Advanced

  13. 5th Int'l Conference on "Analysis of Manufacturing Systems – Production Management", Zakynthos Island, Greece Results: Delivery performance Conclusions: • For simple operational planning function, STN provides the best delivery performance while TL provides the worst. • For advanced operational planning function, TL provides the best delivery performance while STN provides the worst.

  14. 5th Int'l Conference on "Analysis of Manufacturing Systems – Production Management", Zakynthos Island, Greece Future Research • Development of models and providing analysis for multi-stage manufacturing. • Development of a lead time adaptive approach for supply chain operations planning. • Single-stage manufacturer and distributor. • Multi-stage manufacturing.

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