This research focuses on solving the multistage process push/pull junction point location problem. An aim is to implement a hybrid push/pull production system that can satisfy both high service-levels and low inventory levels. Simultaneously, we consider sophisticated variability, such as multi-products, random setup, indiscriminate break-downs, yield loss, batch processes, and other contingencies. The problem can be solved by a multiple criteria decision-making (MCDM) method. A technique for order-preference by similarity-to-ideal solution (TOPSIS) is used to select a suitable option. The optimisation involves evaluation of stochastic performance measures within alternative scenarios among candidate junction-point locations using a discrete event simulation model. A practical thin film transistor-liquid crystal display (TFT-LCD) process case-study is utilised to illustrate the proposed method. After implementing a hybrid push/pull production strategy, simulation results indicate that the inventory level was reduced by over 18% while the service level remained about the same. For another scenario, a 3.4% decrease in service-level can be paid off by a 46% decrease in inventory level and 34% improvement in lead time.
All Science Journal Classification (ASJC) codes
- Strategy and Management
- Management Science and Operations Research
- Industrial and Manufacturing Engineering