A supply chain network system optimum model for rush orders production decision in global manufacturing

Chung Yung Wang, Gia Shie Liu*, Mu-Chen Chen, Ju Long Chen, Hsiao Min Chen

*Corresponding author for this work

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

3 Scopus citations

Abstract

To keep globally competitive advantage nowadays, enterprises need to confront the challenge of global manufacturing in the multinational business. In such a business environment, the trend of specialization among enterprises is increasing ever obviously and thus creates the essential for developing the global manufacturing strategy. The global manufacturing strategy endeavors to improve operation efficiency and to reduce production cost by implementing supply chain management (SCM). One of the important issues is how to appropriately allocate production resources and demands for improving the performance of global manufacturing network as well as meeting the diversifying customers' requirements. Manufacturers frequently handle rush orders to rapidly respond to the dynamic market. The economic of scale is not suitable for them to face the rush orders. The unit production cost will increase when the quantity of orders increases. This study develops a network optimal distribution model for supply chain, which effectively dispatchs customers' rush demands to globally dispersed manufacturing facilities. In this proposed global manufacturing network, the developed model considers production and transportation cost functions in each manufacturing facility to determine the production quantity in each facility. Additionally, the mathematical property of the developed network model is also analyzed.

Original languageEnglish
Title of host publicationProceedings - INDIN 2010
Subtitle of host publication8th IEEE International Conference on Industrial Informatics
Pages617-622
Number of pages6
DOIs
StatePublished - 13 Jul 2010
Event8th IEEE International Conference on Industrial Informatics, INDIN 2010 - Osaka, Japan
Duration: 13 Jul 201016 Jul 2010

Publication series

NameIEEE International Conference on Industrial Informatics (INDIN)
ISSN (Print)1935-4576

Conference

Conference8th IEEE International Conference on Industrial Informatics, INDIN 2010
CountryJapan
CityOsaka
Period13/07/1016/07/10

Keywords

  • Global manufacturing network
  • Network equilibrium
  • Rush orders
  • System optimum

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