Optimiztion in Supply Chain with JIT Environment, A Rotational Cyclic Policy

A supply chain system of a Just-in-time production facility consists of raw material suppliers, manufacturers and retailers where inventory of raw materials and finished goods are involved, respectively. This research focuses on reducing the idle time of the production facilities by assuming that the production of succeeding cycle starts immediately after the production of preceding cycle. In reality, the inventory of a supply chain system may not be completely empty. A number of products may be leftover after the deliveries are made. These leftover inventories are added to the next shipment after the production of required amount to makeup a complete batch for shipment. Therefore, it is extremely important to search for an optimal strategies for these types production facilities where leftover finished goods inventory remains after the final shipment in a production cycle. Considering these scenarios, an inventory model is developed for an imperfect matching condition where some finished goods remains after the shipments. Based on the previous observation, this research also considers a single facility that follows JIT delivery and produces multiple products to satisfy customers’ demand. For this problem a rotational cycle model is developed to optimize the facility operations. Both problems are categorized as mixed integer non-linear programming problems which are to be solved to find optimum number of orders, shipments and rotational cycle policy for multiple products. Also, this solution will lead to estimate the optimum production quantity and minimum total system cost