An integrated model for production and batch shipments for ramp-up production

Abstract

The cost-effective fulfillment of demand requirements during a ramp-up period should be deliberately managed since both production rate and demand rate are variant due to the learning effect in a production system as well as a demand growth during this period. In this work, the issue of integrative scheme of production and supply planning from a manufacture to a retailer is studied to minimize the overall relevant cost during a ramp-up period. Basic decisions from the developed model are the composition of work cycles during a ramp-up period, the resource deployment plan for each production period and the amount of batch shipments while considering the learning effect of manufacturing resources (for example, machines, human workers, and so on). Detailed solution procedure for determining those decisions is proposed and the numerical analyses with it are done to analyze the effects of several key operating parameters. Based on correlation analyses with randomized test instances, several managerial implications are finally discussed.