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Explore different WIP clearing assumptions like Linear, Short Term Nonlinear and Long Term Nonlinear to optimize operational planning in supply chain management. Evaluate cost, utilization, and delivery performance for advanced and simple operational planning functions.
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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
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
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
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
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
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:
5th Int'l Conference on "Analysis of Manufacturing Systems – Production Management", Zakynthos Island, Greece Experimental design STN L=4 LTN TL
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
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
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.
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
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
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.
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.