An Integrated Bi-objective Build-to-order Supply Chain and Maintenance under Uncertainties: A Case Study

Document Type: Research Paper

Authors

School of Industrial Engineering, College of Engineering, University of Tehran, Tehran, Iran

Abstract

Nowadays, by increasing competition and customization, a build-to-order (BTO) system is given more consideration. Because of receiving the order at the beginning of assembling in BTO systems, the time of a failed machine causes a longer lead time. Thus, preventive maintenance (PM) can increase the availability of machines and is useful in this system. It is under the constant interval, in which the Weibull’s graph is used to estimate a Weibull distribution for a failure rate function. This paper aims to maximize the total available time of machines, which is calculated based on the sum of the time of stopping the machines. In other words, the time of stopping the machines is maximized. This paper develops a new integrated bi-objective BTO supply chain problem, which maximizes the profit and minimizes the time of stopping the machines by PM. Maintenance is a new issue in BTO studies. Since the importance of on-time lead time in these systems, PM has beneficial results in these systems, which is very useful for senior managers. Outsourcing and pricing are the other issues considered in this paper. Furthermore, a robust optimization approach is applied to handle uncertainty. The new robust BTO supply chain model is performed in a wood industry to accredit this proposed model. At last, managerial insights are provided in such a way that using PM, outsourcing, pricing, and uncertainty in BTO systems is very useful and applicable.

Keywords


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