IDEAS home Printed from https://ideas.repec.org/a/gam/jeners/v12y2019i11p2059-d235476.html
   My bibliography  Save this article

Optimization of Safety Stock under Controllable Production Rate and Energy Consumption in an Automated Smart Production Management

Author

Listed:
  • Mitali Sarkar

    (Department of Industrial Engineering, Yonsei University, 50 Yonsei-ro, Sinchon-dong, Seodaemun-gu, Seoul 03722, Korea)

  • Biswajit Sarkar

    (Department of Industrial & Management Engineering, Hanyang University, Ansan, Gyeonggi-do 155 88, Korea)

Abstract

A smart production system is essential to produce complex products under the consumption of efficient energy. The main ramification of controllable production rate, amount of production size, and safety stocks is simultaneously optimized under proper utilization of energy within a smart production system with a random breakdown of spare parts. Due to the random breakdown, a greater amount of energy may be used. For this purpose, this study is concerned about the optimum safety stock level under the exact amount of energy utilization. For random breakdown, there are three cases as production inventory meets the demand without utilization of the safety stock, with using of the safety stock, and consumed the total safety stock amount and facing shortages. After the random breakdown time, the smart production system may move to an out-of-control state and may produce defective items, where the production rate of defective items is a random variable, which follows an exponential distribution. The total cost is highly nonlinear and cannot be solved by any classical optimization technique. A mathematical optimization tool is utilized to test the model. Numerical study proves that the effect of energy plays an important role for the smart manufacturing system even though random breakdowns are there. it is found that the controllable production rate under the effect of the optimum energy consumption really effects significantly in the minimization cost. It saves cost regarding the corrective and preventive maintenance cost. The amount of safety stock can have more support under the effect of optimum energy utilization. The energy can be replaced by the solar energy.

Suggested Citation

  • Mitali Sarkar & Biswajit Sarkar, 2019. "Optimization of Safety Stock under Controllable Production Rate and Energy Consumption in an Automated Smart Production Management," Energies, MDPI, vol. 12(11), pages 1-16, May.
    • Handle: RePEc:gam:jeners:v:12:y:2019:i:11:p:2059-:d:235476
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1996-1073/12/11/2059/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/1996-1073/12/11/2059/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Mitali Sarkar & Biswajit Sarkar & Muhammad Waqas Iqbal, 2018. "Effect of Energy and Failure Rate in a Multi-Item Smart Production System," Energies, MDPI, vol. 11(11), pages 1-21, October.
    2. Wee, Hui-Ming & Yang, Wen-Hsiung & Chou, Chao-Wu & Padilan, Marivic V., 2012. "Renewable energy supply chains, performance, application barriers, and strategies for further development," Renewable and Sustainable Energy Reviews, Elsevier, vol. 16(8), pages 5451-5465.
    3. Muhammad Omair & Biswajit Sarkar & Leopoldo Eduardo Cárdenas-Barrón, 2017. "Minimum Quantity Lubrication and Carbon Footprint: A Step towards Sustainability," Sustainability, MDPI, vol. 9(5), pages 1-18, April.
    4. Khalil, Munawar & Berawi, Mohammed Ali & Heryanto, Rudi & Rizalie, Akhmad, 2019. "Waste to energy technology: The potential of sustainable biogas production from animal waste in Indonesia," Renewable and Sustainable Energy Reviews, Elsevier, vol. 105(C), pages 323-331.
    5. Giotitsas, Chris & Pazaitis, Alex & Kostakis, Vasilis, 2015. "A peer-to-peer approach to energy production," Technology in Society, Elsevier, vol. 42(C), pages 28-38.
    6. Caro-Ruiz, C. & Lombardi, P. & Richter, M. & Pelzer, A. & Komarnicki, P. & Pavas, A. & Mojica-Nava, E., 2019. "Coordination of optimal sizing of energy storage systems and production buffer stocks in a net zero energy factory," Applied Energy, Elsevier, vol. 238(C), pages 851-862.
    7. Dehning, Patrick & Blume, Stefan & Dér, Antal & Flick, Dominik & Herrmann, Christoph & Thiede, Sebastian, 2019. "Load profile analysis for reducing energy demands of production systems in non-production times," Applied Energy, Elsevier, vol. 237(C), pages 117-130.
    8. Morato, Teresa & Vaezi, Mahdi & Kumar, Amit, 2019. "Assessment of energy production potential from agricultural residues in Bolivia," Renewable and Sustainable Energy Reviews, Elsevier, vol. 102(C), pages 14-23.
    9. Sana, Shib Sankar, 2010. "An economic production lot size model in an imperfect production system," European Journal of Operational Research, Elsevier, vol. 201(1), pages 158-170, February.
    10. Biel, K. & Glock, C. H., 2016. "On the use of waste heat in a two-stage production system with controllable production rates," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 82130, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    11. Biel, Konstantin & Glock, Christoph H., 2016. "On the use of waste heat in a two-stage production system with controllable production rates," International Journal of Production Economics, Elsevier, vol. 181(PA), pages 174-190.
    12. Louly, Mohamed-Aly Ould & Dolgui, Alexandre, 2009. "Calculating safety stocks for assembly systems with random component procurement lead times: A branch and bound algorithm," European Journal of Operational Research, Elsevier, vol. 199(3), pages 723-731, December.
    13. B C Giri & T Dohi, 2005. "Exact formulation of stochastic EMQ model for an unreliable production system," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 56(5), pages 563-575, May.
    14. L E Cárdenas-Barrón, 2006. "Optimal production policy with shelf-life including shortages: a comment," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 57(12), pages 1499-1500, December.
    15. Lund, Henrik & Østergaard, Poul Alberg & Connolly, David & Mathiesen, Brian Vad, 2017. "Smart energy and smart energy systems," Energy, Elsevier, vol. 137(C), pages 556-565.
    16. Sarkar, Biswajit & Guchhait, Rekha & Sarkar, Mitali & Cárdenas-Barrón, Leopoldo Eduardo, 2019. "How does an industry manage the optimum cash flow within a smart production system with the carbon footprint and carbon emission under logistics framework?," International Journal of Production Economics, Elsevier, vol. 213(C), pages 243-257.
    17. Sana, Shib Sankar & Goyal, Suresh Kumar & Chaudhuri, Kripasindhu, 2007. "An imperfect production process in a volume flexible inventory model," International Journal of Production Economics, Elsevier, vol. 105(2), pages 548-559, February.
    18. Harris, Tyler M. & Devkota, Jay P. & Khanna, Vikas & Eranki, Pragnya L. & Landis, Amy E., 2018. "Logistic growth curve modeling of US energy production and consumption," Renewable and Sustainable Energy Reviews, Elsevier, vol. 96(C), pages 46-57.
    19. Jaber, M.Y. & Bonney, M. & Moualek, I., 2009. "An economic order quantity model for an imperfect production process with entropy cost," International Journal of Production Economics, Elsevier, vol. 118(1), pages 26-33, March.
    20. Chen, Xingzheng & Li, Congbo & Tang, Ying & Li, Li & Du, Yanbin & Li, Lingling, 2019. "Integrated optimization of cutting tool and cutting parameters in face milling for minimizing energy footprint and production time," Energy, Elsevier, vol. 175(C), pages 1021-1037.
    21. Evan L. Porteus, 1986. "Optimal Lot Sizing, Process Quality Improvement and Setup Cost Reduction," Operations Research, INFORMS, vol. 34(1), pages 137-144, February.
    22. Nordborg, Maria & Berndes, Göran & Dimitriou, Ioannis & Henriksson, Annika & Mola-Yudego, Blas & Rosenqvist, Håkan, 2018. "Energy analysis of willow production for bioenergy in Sweden," Renewable and Sustainable Energy Reviews, Elsevier, vol. 93(C), pages 473-482.
    23. Arunava Majumder & Rekha Guchhait & Biswajit Sarkar, 2017. "Manufacturing quality improvement and setup cost reduction in a vendor-buyer supply chain model," European Journal of Industrial Engineering, Inderscience Enterprises Ltd, vol. 11(5), pages 588-612.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Mitali Sarkar & Sungjun Kim & Jihed Jemai & Baishakhi Ganguly & Biswajit Sarkar, 2019. "An Application of Time-Dependent Holding Costs and System Reliability in a Multi-Item Sustainable Economic Energy Efficient Reliable Manufacturing System," Energies, MDPI, vol. 12(15), pages 1-19, July.
    2. Barros, Júlio & Cortez, Paulo & Carvalho, M. Sameiro, 2021. "A systematic literature review about dimensioning safety stock under uncertainties and risks in the procurement process," Operations Research Perspectives, Elsevier, vol. 8(C).
    3. Nunes, L.J.R. & Causer, T.P. & Ciolkosz, D., 2020. "Biomass for energy: A review on supply chain management models," Renewable and Sustainable Energy Reviews, Elsevier, vol. 120(C).
    4. Irfanullah Khan & Jihed Jemai & Han Lim & Biswajit Sarkar, 2019. "Effect of Electrical Energy on the Manufacturing Setup Cost Reduction, Transportation Discounts, and Process Quality Improvement in a Two-Echelon Supply Chain Management under a Service-Level Constrai," Energies, MDPI, vol. 12(19), pages 1-32, September.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Mitali Sarkar & Sungjun Kim & Jihed Jemai & Baishakhi Ganguly & Biswajit Sarkar, 2019. "An Application of Time-Dependent Holding Costs and System Reliability in a Multi-Item Sustainable Economic Energy Efficient Reliable Manufacturing System," Energies, MDPI, vol. 12(15), pages 1-19, July.
    2. Shaktipada Bhuniya & Biswajit Sarkar & Sarla Pareek, 2019. "Multi-Product Production System with the Reduced Failure Rate and the Optimum Energy Consumption under Variable Demand," Mathematics, MDPI, vol. 7(5), pages 1-20, May.
    3. Glock, Christoph H. & Grosse, Eric H., 2021. "The impact of controllable production rates on the performance of inventory systems: A systematic review of the literature," European Journal of Operational Research, Elsevier, vol. 288(3), pages 703-720.
    4. R. Uthayakumar & M. Rameswari, 2012. "An Economic Production Quantity Model for Defective Items with Trapezoidal type Demand Rate," Journal of Optimization Theory and Applications, Springer, vol. 154(3), pages 1055-1079, September.
    5. Mitali Sarkar & Biswajit Sarkar & Muhammad Waqas Iqbal, 2018. "Effect of Energy and Failure Rate in a Multi-Item Smart Production System," Energies, MDPI, vol. 11(11), pages 1-21, October.
    6. Hsu, Jia-Tzer & Hsu, Lie-Fern, 2013. "An EOQ model with imperfect quality items, inspection errors, shortage backordering, and sales returns," International Journal of Production Economics, Elsevier, vol. 143(1), pages 162-170.
    7. Hajo Terbrack & Thorsten Claus & Frank Herrmann, 2021. "Energy-Oriented Production Planning in Industry: A Systematic Literature Review and Classification Scheme," Sustainability, MDPI, vol. 13(23), pages 1-32, December.
    8. Beck, Fabian G. & Biel, Konstantin & Glock, Christoph H., 2019. "Integration of energy aspects into the economic lot scheduling problem," International Journal of Production Economics, Elsevier, vol. 209(C), pages 399-410.
    9. M. Jaber & Z. Givi, 2015. "Imperfect production process with learning and forgetting effects," Computational Management Science, Springer, vol. 12(1), pages 129-152, January.
    10. Yoo, Seung Ho & Kim, DaeSoo & Park, Myung-Sub, 2009. "Economic production quantity model with imperfect-quality items, two-way imperfect inspection and sales return," International Journal of Production Economics, Elsevier, vol. 121(1), pages 255-265, September.
    11. Ahl, A. & Yarime, M. & Goto, M. & Chopra, Shauhrat S. & Kumar, Nallapaneni Manoj. & Tanaka, K. & Sagawa, D., 2020. "Exploring blockchain for the energy transition: Opportunities and challenges based on a case study in Japan," Renewable and Sustainable Energy Reviews, Elsevier, vol. 117(C).
    12. Bimal Kumar Sett & Bikash Koli Dey & Biswajit Sarkar, 2020. "Autonomated Inspection Policy for Smart Factory—An Improved Approach," Mathematics, MDPI, vol. 8(10), pages 1-19, October.
    13. Xia, Jing & Niu, Wenju, 2021. "Carbon-reducing contract design for a supply chain with environmental responsibility under asymmetric information," Omega, Elsevier, vol. 102(C).
    14. Chakraborty, Tulika & Giri, B.C. & Chaudhuri, K.S., 2008. "Production lot sizing with process deterioration and machine breakdown," European Journal of Operational Research, Elsevier, vol. 185(2), pages 606-618, March.
    15. Kazaz, Burak & Sloan, Thomas W., 2013. "The impact of process deterioration on production and maintenance policies," European Journal of Operational Research, Elsevier, vol. 227(1), pages 88-100.
    16. Harun Öztürk, 2019. "Modeling an inventory problem with random supply, inspection and machine breakdown," OPSEARCH, Springer;Operational Research Society of India, vol. 56(2), pages 497-527, June.
    17. Sarkar, Mitali & Sarkar, Biswajit, 2013. "An economic manufacturing quantity model with probabilistic deterioration in a production system," Economic Modelling, Elsevier, vol. 31(C), pages 245-252.
    18. Om Prakash & A.R. Roy & A. Goswami, 2014. "Stochastic manufacturing system with process deterioration and machine breakdown," International Journal of Systems Science, Taylor & Francis Journals, vol. 45(12), pages 2539-2551, December.
    19. Bouslah, Bassem & Gharbi, Ali & Pellerin, Robert, 2013. "Joint optimal lot sizing and production control policy in an unreliable and imperfect manufacturing system," International Journal of Production Economics, Elsevier, vol. 144(1), pages 143-156.
    20. Sana, Shib Sankar, 2010. "A production-inventory model in an imperfect production process," European Journal of Operational Research, Elsevier, vol. 200(2), pages 451-464, January.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jeners:v:12:y:2019:i:11:p:2059-:d:235476. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.