Acheiving X-Sigma Delivery in Supply Chains
| Authors: | Yu Danqing, University of Connecticut, United States
Luh P.B., University of Connecticut, United States
Chang S.C., University of Connecticut, United States |
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| Topic: | 5.2 Manufacturing Modelling for Management and Control |
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| Session: | Supply Chains and Networks |
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| Keywords: | Manufacturing scheduling, Supply chain, Six-sigma, Step penalty, Lagrangian relaxation |
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Abstract
Time-based competition and market globalization make it imperative for supply chains to have short and reliable order deliveries. In this paper, make-to-order supply chains with sequential workflows are considered. An effective solution methodology is developed to minimize overall order tardiness and earliness costs and reduce delivery variability through effective scheduling and coordinating individual manufacturers across a chain. To accommodate new arrivals while fulfilling commitments of existing orders, a rescheduling approach with a step penalty technique is presented to generate high quality schedules in a timely fashion. Numerical testing results demonstrate that the new approach is effective to schedule manufacturers across a chain to achieve the required three-sigma deliveries.
