EconPapers    
Economics at your fingertips  
 

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

Mitali Sarkar () and Biswajit Sarkar ()
Additional contact information
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

Energies, 2019, vol. 12, issue 11, 1-16

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.

Keywords: renewable energy; smart production system; random breakdown; safety stock; controllable production rate (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
https://www.mdpi.com/1996-1073/12/11/2059/pdf (application/pdf)
https://www.mdpi.com/1996-1073/12/11/2059/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jeners:v:12:y:2019:i:11:p:2059-:d:235476

Access Statistics for this article

Energies is currently edited by Prof. Dr. Enrico Sciubba

More articles in Energies from MDPI, Open Access Journal
Bibliographic data for series maintained by XML Conversion Team ().

 
Page updated 2019-09-07
Handle: RePEc:gam:jeners:v:12:y:2019:i:11:p:2059-:d:235476