Optimizing JIT production and maintenance strategies for material management in the presence of quality decline and random demand fluctuations

Material management is a critical component of any organization, as it encompasses the efficient and effective handling of materials throughout the entire supply chain process. Just-in-time (JIT) strategies play a vital role in streamlining the supply chain process and minimizing waste. The paper ex...

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Bibliographic Details
Published in:Acta logistica 2024-06, Vol.11 (2), p.281-292
Main Authors: Rivera-Gomez, Hector, Sanchez-Partida, Diana, Ortega-Reyes, Antonio, Gonzalez-Hernandez, Isidro
Format: Article
Language:English
Subjects:
Context
Control theory
Cost analysis
Cost control
Critical components
Defective products
Hedging
Inventory
Maintenance
Manufacturing
Materials handling
Materials management
Mathematical models
Optimal control
Optimization
Performance evaluation
Preventive maintenance
Process parameters
Product quality
Production management
Production planning
Quality control
Remanufacturing
Scheduling
Supply chains
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Summary:Material management is a critical component of any organization, as it encompasses the efficient and effective handling of materials throughout the entire supply chain process. Just-in-time (JIT) strategies play a vital role in streamlining the supply chain process and minimizing waste. The paper examines the optimization of JIT production management, quality, and maintenance planning in the context of material management. An integrated model is proposed based on optimal control theory to formulate a set of innovative systems dynamics that consider quality decline in a stochastic context. The model also includes random demand fluctuations through a stochastic diffusion process. The objective of the model is to enhance company competitiveness by satisfying a service level constraint and jointly optimizing the JIT production and maintenance control parameters to minimize inventory levels and reduce the total cost. The findings reveal significant interactions between costs and control parameters of both JIT production and maintenance strategies due to their close relationship, leading to the conclusion that the development of an integrative model is more cost-efficient than managing them independently. A comparative analysis further enhances the study by highlighting the potential cost savings in implementing the suggested collaborative control strategy. Overall, the paper contributes to the literature on material management by addressing the research gap in the optimization of JIT production management, quality, and maintenance planning under a stochastic context.
ISSN:1339-5629
1339-5629
DOI:10.22306/al.v11i2.511