A two-stage stochastic model for designing cellular manufacturing systems with simultaneous multiple processing routes and subcontracting

Document Type: Article

Authors

1 Department of Industrial Engineering & Management Systems, Amirkabir University of Technology, 424 Hafez Ave., 15916-34311 Tehran, Iran

2 Department of Industrial Engineering, Urmia University of Technology, Band Road, 57155-419 Urmia, West Azerbaijan, Iran.

Abstract

In recent decades, many researchers have studied the cellular manufacturing system with consideration of various issues such as scheduling, production planning, layout, reliability, etc. However, limited research papers have investigated this problem in an uncertain environment. The present paper addresses a stochastic problem in cellular manufacturing systems considering simultaneous multiple routings and subcontracting. In the developed problem, each part can be simultaneously produced in multiple processing routes. It is also assumed that the unsatisfied part demands as a result of limited machine capacity or high manufacturing cost could be outsourced. A two-stage stochastic programming approach is employed to take the uncertainty into consideration and to formulate the problem. The objective function is to minimize the summation of production, subcontracting, material handling, and machine idleness costs. A sample average approximation method is applied as a solution method. Also, for further illustration of the problem, a numerical example is solved and sensitivity analyses are conducted. Finally, through some numerical examples extracted from related literature, the advantages of constructing a stochastic optimization model for the problem are demonstrated.

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