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April - June 2007 - Kasetsart University

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382<br />

Figure 1 The two-stage manufacturing system.<br />

k w<br />

c w<br />

the WIP delivery performance to stage-<br />

2 manufacturing process<br />

the unit inventory cost of WIP<br />

Stage 2<br />

j index of raw materials in stage 2; j = {1,<br />

2,…, n}<br />

p2,j the on-time delivery performance of<br />

supplier j<br />

*<br />

q2, j<br />

q 2,j<br />

x2,j k2,j the quantity of stage-2 raw material j that<br />

is delivered on time<br />

the quantity of stage-2 raw material j that<br />

is ordered<br />

the safety stock of stage-2 raw material j<br />

the delivery performance to manufacture<br />

of stage-2 raw material j<br />

<strong>Kasetsart</strong> J. (Nat. Sci.) 41(2)<br />

c 2,j<br />

p s2<br />

the unit inventory cost of stage-2 raw<br />

material j<br />

qp the stage-2 manufacturing performance<br />

the quantity of finished product that is<br />

required<br />

xp the safety stock of finished product<br />

kp The finished product delivery<br />

cp performance to customer<br />

the unit inventory cost of finished<br />

product<br />

co the unit opportunity cost of finished<br />

product that is not delivered on time<br />

As in Maia and Qassim (1999), the ontime<br />

delivery performance of supplier i and the<br />

on-time delivery performance of supplier j could<br />

be calculated from the past data records, using<br />

Equations (1) and (2), respectively.

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