Since 1913, the Harris’ model is adopted within intermittent production systems to size the batches to produce and purchase. For each product, the model sets the so-called Economic Order Quantity (EOQ) as the quantity optimally trading-off the cost of orders and the average stock cost. Traditionally, the EOQ from the Harris’ model is a milestone for make-to-stock (MTS) production systems. In addition, existing extensions of the base model are in the direction of including multiple actors of the supply chain, i.e. joint economic lot size, and tailored product management policies, i.e. consignment stock. A basic hypothesis behind the lot size models is that the production line productivity is higher than the average market demand so that a dynamic equilibrium becomes feasible. Nevertheless, in the case of permanent or temporary high product request, the productivity of a single production line can be insufficient. This case makes of interest the adoption of multi-line production systems. Such systems are made of parallel production lines able to produce the same product at the same final qualitative standards so that the output is a unique batch of identical products. This paper investigates MTS multi-line systems presenting two formulations of the EOQ model for the case of identical lines (1) and the case of lines with different productivity and setup cost (2). Finally, an application of the model is done with data taken from a leading company operating in the beverage packaging sector.

Beyond the Harris’ model to optimally define lot sizes in a Make-to-Stock multi-line production system / Bortolini, Marco; Errani, Silvia; Gamberi, Mauro; Pilati, Francesco; Regattieri, Alberto. - ELETTRONICO. - (2019), pp. 1316-1327. [10.1007/978-3-319-97773-7_113]

Beyond the Harris’ model to optimally define lot sizes in a Make-to-Stock multi-line production system

Pilati, Francesco;
2019-01-01

Abstract

Since 1913, the Harris’ model is adopted within intermittent production systems to size the batches to produce and purchase. For each product, the model sets the so-called Economic Order Quantity (EOQ) as the quantity optimally trading-off the cost of orders and the average stock cost. Traditionally, the EOQ from the Harris’ model is a milestone for make-to-stock (MTS) production systems. In addition, existing extensions of the base model are in the direction of including multiple actors of the supply chain, i.e. joint economic lot size, and tailored product management policies, i.e. consignment stock. A basic hypothesis behind the lot size models is that the production line productivity is higher than the average market demand so that a dynamic equilibrium becomes feasible. Nevertheless, in the case of permanent or temporary high product request, the productivity of a single production line can be insufficient. This case makes of interest the adoption of multi-line production systems. Such systems are made of parallel production lines able to produce the same product at the same final qualitative standards so that the output is a unique batch of identical products. This paper investigates MTS multi-line systems presenting two formulations of the EOQ model for the case of identical lines (1) and the case of lines with different productivity and setup cost (2). Finally, an application of the model is done with data taken from a leading company operating in the beverage packaging sector.
2019
EngOpt 2018 Proceedings of the 6th International Conference on Engineering Optimization
CHE
Springer
978-3-319-97772-0
Bortolini, Marco; Errani, Silvia; Gamberi, Mauro; Pilati, Francesco; Regattieri, Alberto
Beyond the Harris’ model to optimally define lot sizes in a Make-to-Stock multi-line production system / Bortolini, Marco; Errani, Silvia; Gamberi, Mauro; Pilati, Francesco; Regattieri, Alberto. - ELETTRONICO. - (2019), pp. 1316-1327. [10.1007/978-3-319-97773-7_113]
File in questo prodotto:
File Dimensione Formato  
Beyond the Harris model to optimally define lot sizes in a MTS multi-line production system.pdf

Solo gestori archivio

Tipologia: Post-print referato (Refereed author’s manuscript)
Licenza: Tutti i diritti riservati (All rights reserved)
Dimensione 151.53 kB
Formato Adobe PDF
151.53 kB Adobe PDF   Visualizza/Apri

I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione

Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11572/247842
Citazioni
  • ???jsp.display-item.citation.pmc??? ND
  • Scopus ND
  • ???jsp.display-item.citation.isi??? ND
social impact