Integrated optimisation of scheduling and ordering based on semi-finished goods delayed differentiation

Abstract

The implementation of dynamic ordering policies is becoming increasingly important for the competitiveness of modern manufacturing systems. However, existing models on dynamic ordering pay little attention to production scheduling, which greatly affects the fulfilment of dynamic ordering, especially in complex manufacturing systems. Therefore, it is imperative to establish a new model which integrates both dynamic ordering and production scheduling. Accordingly, a quantitative measurement method for integration is needed. To this end, this paper proposes a semi-finished goods delayed differentiation (SFGDD) model by taking into account integration of the scheduling inventory control and dynamic ordering simultaneously. The objective of this model is to study the relationship between the shop floor inventory and the ordering control based on the semi-finished goods dynamic dispatching mechanism. In addition, the days of inventory (DOI) and a backorder penalty exponential function are developed to quantitatively measure such a relationship. To obtain the optimal results, this paper employs a heuristic genetic algorithm (HGA) with a heuristic encoding scheme to synchronise the generation and selection of inventory variables coherently. A case study on a semiconductor assembly and test manufacturing (ATM) is presented, and a significant revenue enhancement and inventory reduction are achieved accordingly.

Keywords:

• dynamic ordering
• scheduling
• heuristic genetic algorithm
• inventory control

Acknowledgements

This paper is sponsored by the National Natural Science Foundation of China under grant number 51205264, and by the Science and Technology Bureau of Sichuan Province under grant number 2009GZ0159. This support is greatly acknowledged.