An Inventory Decision Support System to the Glass Manufacturing Industry
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1 A Ivetory Deciio Suort Sytem to the Gla Maufacturig Idutry Nuo M. R. Órfão (Mechaical Egieerig Deartmet, ESTG-IPLEI) Carlo F. G. Bio (Ititute for Sytem ad Robotic, IST-UTL) EWG-DSS th Iteratioal Meetig of the EURO Workig Grou o Deciio Suort Sytem Cacai, 8-20 May 200 A Ivetory Deciio uort Sytem to the Gla Maufacturig Idutry - Nuo Órfão ad Carlo Bio
2 Summary. Problem framework 2. What kid of deciio? 3. Methodology 4. The gla maufacturig roce 5. The IPA Aroach 6. The SimulGLASS ackage 7. Numerical tudy examle 8. Future develomet 9. Cocluio 2 A Ivetory Deciio uort Sytem to the Gla Maufacturig Idutry - Nuo Órfão ad Carlo Bio
3 . Problem framework Geeralized Portuguee gla idutry roductio trategy i a roducig-to-order oe; Maager are ofte cofroted with deciio o whether or ot to hold ivetorie; Some lack of uitable ivetory deciio uort ytem; A Ivetory Deciio uort Sytem to the Gla Maufacturig Idutry - Nuo Órfão ad Carlo Bio 3
4 2. What kid of deciio? For a roductio roce, ad for a give roductio trategy (make-to-tock, maketo-order,...) we decide o... i) the bae-tock level that miimize the total cot ii) the correodig ervice level Comare the erformace of alterative roductio trategie A Ivetory Deciio uort Sytem to the Gla Maufacturig Idutry - Nuo Órfão ad Carlo Bio 4
5 3. Methodology i) Proce data aalyi ii) Literature review iii) Model defiitio iv) Software develomet v) The tetig tage vi) Numerical tudy vii) Aalyi of reult 5 A Ivetory Deciio uort Sytem to the Gla Maufacturig Idutry - Nuo Órfão ad Carlo Bio
6 4. The Gla Maufacturig Proce Hot-area: Aealig Moldig Selectio I Rough Cut Selectio II U 9 Z 9 U 8 Z8... Cold-area: Markig Stoe Cut Acid Bath Selectio Packig... Z 3 U 2 Z 2 U Z U = Productio Limit Z = Echelo Bae-Stock Oeratio Buffer 6 A Ivetory Deciio uort Sytem to the Gla Maufacturig Idutry - Nuo Órfão ad Carlo Bio
7 5. Model Defiitio Multile machie i erie with fiite caacity Multi-roduct Lot Slittig Radom Yield Radom Demad Productio deciio baed o a weighted hortfall heuritic A Ivetory Deciio uort Sytem to the Gla Maufacturig Idutry - Nuo Órfão ad Carlo Bio 7
8 6. The Ifiiteimal Perturbatio Aalyi (IPA) Aroach Tool ued o comlex ytem to comute Grad J (i order to the cotrol arameter); Claical aroach: M arameter M Simulatio IPA aroach: M arameter Simulatio A Ivetory Deciio uort Sytem to the Gla Maufacturig Idutry - Nuo Órfão ad Carlo Bio 8
9 7. Software Package - Simulator Start Simulatio Demad Geeratio Ivetory Udate, E= I Shortfall Udate, Y=Z-E Productio Deciio P=mi {Y,I,C/T,U} Cot Udate J= (h.i ).I - = No =N? Simulatio retur: Total Cot (J) Cot Gradiet (Grad J) Ye Ed Simulatio J = S = 2 [( ) ] ( ) ( ) S ( )( I h I h I b α h m ) = P 9 A Ivetory Deciio uort Sytem to the Gla Maufacturig Idutry - Nuo Órfão ad Carlo Bio
10 7.2 Software Package - Otimizer 3250 Cot MTO DD MTS_DD_MTO MTS Otim izatio Otimizatio algorithm: Fletcher & Reeve (Cojugated Gradiet Method) A Ivetory Deciio uort Sytem to the Gla Maufacturig Idutry - Nuo Órfão ad Carlo Bio 0
11 7.3 Software Package - Outut Miimum cot for the imulated trategy; Otimal bae-tock level for all roduct at all tage; Otimal Productio limit for all roduct at all tage; Average lead-time for all roduct; Correodig ervice level; Iteral Cot (I-houe cot); A Ivetory Deciio uort Sytem to the Gla Maufacturig Idutry - Nuo Órfão ad Carlo Bio
12 7.3 Software Package Uer iterface 2 A Ivetory Deciio uort Sytem to the Gla Maufacturig Idutry - Nuo Órfão ad Carlo Bio
13 7.4 Software Package - Tet Derivative accuracy J Z = J erturbed ε J omial Fuctio cut alog gradiet directio Cotrol of tate ad deciio variable (Ivetory 0, Productio 0,...) 3 A Ivetory Deciio uort Sytem to the Gla Maufacturig Idutry - Nuo Órfão ad Carlo Bio
14 8. Numerical Study Examle - Data Proce Parameter 27 Product (Pareto Law) High demad level (80%) Medium demad level (5%) Low demad level (5%) 9 Machie (tage) ad radom yield 4 roductio hift/day 4 Productio trategie: MTS, MTO, DD ad M/D/M 4 A Ivetory Deciio uort Sytem to the Gla Maufacturig Idutry - Nuo Órfão ad Carlo Bio
15 8.2 Numerical Study Examle - Reult Productio Otimal Cofid. I-houe Strategy Cot Iterval Cot MTO 3079,6 ±,9 % 488,6 Cot: DD 529,4 ± 0,7 % 540,4 M/D/M 075,8 ± 0,8 % 595,2 [m.u.] MTS 999, ±,4 % 63,5 Lead-time: STRATEGY MTO DD M/D/M MTS Demad Level Lead-time [hift] High 7,2 2,7,24 2,73 Medium 6,66 2,67 2,6,7 Low 4,67 2,74 4,87 0,73 All roduct 6,8 2,7 2,9,54 5 A Ivetory Deciio uort Sytem to the Gla Maufacturig Idutry - Nuo Órfão ad Carlo Bio
16 9. Cocluio Develomet of a efficiet tool to uort roductio maagemet team; Evaluatio of alterative roductio trategie; IPA rovide raid idetificatio of good olutio; 6 A Ivetory Deciio uort Sytem to the Gla Maufacturig Idutry - Nuo Órfão ad Carlo Bio
17 9.2 Future develomet Ue firm data bae to udate roce arameter (roceig time, yield rate,...) Develomet of more comlex model (with radom caacity ad roceig time); Dealig with radom yield Alterative otimizatio algorithm (Broyde-Fletcher-Goldfarb-Shao,...); A Ivetory Deciio uort Sytem to the Gla Maufacturig Idutry - Nuo Órfão ad Carlo Bio 7
18 A Ivetory Deciio uort Sytem to the Gla Maufacturig Idutry - Nuo Órfão ad Carlo Bio 8 A. Productio Deciio ay tage for, caacity boud i if roductio boud i if 0 ivetory boud i if hortfall boud i if = Z T C Z I Z Y Z P ) ( m m m,,,, tage for, mi,, ) ( = m m m m U I T C Y P,
19 A Ivetory Deciio uort Sytem to the Gla Maufacturig Idutry - Nuo Órfão ad Carlo Bio 9 ( ) [ ] ( ) ( ) ( )( ) = = = S S P m h b I h I h I J 2 α A.2 Performace Meaure - Cot ( ) { } ( ) { } ( ) ( )( ) = = < > = S S Z P m h b Z I I h Z I I h Z I Z J α
20 A.3 IPA Validatio Validatio rocedure coit i how that: All variable are diferetiable; Defie their value; Exected Value ad Diferetiatio are ermutable oeratore; 20 A Ivetory Deciio uort Sytem to the Gla Maufacturig Idutry - Nuo Órfão ad Carlo Bio
21 A.4 Otimality Coditio The otimal bae-tock level, Z, for the erformace meaure COST ad for ay roductio trategy are uch that the followig relatio hold: Pr ( D ) I = Oce the SERVICE LEVEL i defied, the etimatio of the ealty cot become a imle tak. b b h 2 A Ivetory Deciio uort Sytem to the Gla Maufacturig Idutry - Nuo Órfão ad Carlo Bio
22 A.5 (,S) Policy defiitio G(y) x = Ivetory Level k Cotrol Policy: - if x < order u to S; -If x ot to order; S y Order Not to order 22 A Ivetory Deciio uort Sytem to the Gla Maufacturig Idutry - Nuo Órfão ad Carlo Bio
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