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April - June 2007 - Kasetsart University

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p<br />

1,<br />

i<br />

*<br />

<strong>Kasetsart</strong> J. (Nat. Sci.) 41(2) 383<br />

q1,<br />

i<br />

= (1)<br />

q<br />

1,<br />

i<br />

*<br />

q2,<br />

i<br />

p2,<br />

i = (2)<br />

q2,<br />

i<br />

If the manufacturer held safety stocks for every raw material, the delivery performances to<br />

manufacture of stage-1 raw material i and stage-2 raw material j could be defined as in Equations (3)<br />

and (4), respectively.<br />

k<br />

1,<br />

i<br />

*<br />

1i 1,<br />

i<br />

1,<br />

i<br />

q , + x<br />

=<br />

q<br />

x1,<br />

i<br />

= p1,<br />

i +<br />

q<br />

∀ i = {, 12K , , m}<br />

1,<br />

i<br />

*<br />

q2, j + x2,<br />

j x2,<br />

j<br />

k2,<br />

j = = p2,<br />

j +<br />

q2,<br />

j<br />

q2,<br />

j<br />

∀ j = {, 12K , , n}<br />

(4)<br />

The inventory cost of the safety stock of each raw material could be computed from Equations<br />

(5) or (6) as follows.<br />

C1, i = c1, ix1, i = c1, iq1, i( k1, i − p1,<br />

i)<br />

∀ i = {, 12K , , m}<br />

(5)<br />

C2, j = c2, jx2, j = c2, jq2, j( k2, j − p2,<br />

j)<br />

∀ j = {, 12K , , n}<br />

(6)<br />

The manufacturing performance of stage-1 process, ps1 , was defined as the ratio between ontime<br />

and planned production, accounting for all delays that may occur, but excluding those caused by<br />

material stockouts. The ps1 could be found from Equation (7). The WIP delivery performance to stage-<br />

2 manufacturing process, kw, was given in Equation (8).<br />

p<br />

s1<br />

=<br />

q<br />

q<br />

*<br />

w<br />

w<br />

m<br />

x<br />

kw = ps k i + w<br />

1∏<br />

1,<br />

i=<br />

1 q<br />

(8)<br />

w<br />

The inventory cost of the WIP safety stock could be calculated from Equation (9).<br />

m<br />

Cw = cwxw = cwqw( kw − ps ∏ k i)<br />

1 1,<br />

(9)<br />

i=<br />

1<br />

Similarly, the manufacturing performance of stage-2 process, ps2 , the product delivery<br />

performance, kp, and the product inventory cost could be calculated as follows.<br />

p<br />

s2<br />

=<br />

q<br />

q<br />

*<br />

p<br />

p<br />

x<br />

kp = ps kw k j +<br />

2 ∏ 2<br />

q<br />

n<br />

j=<br />

1<br />

(3)<br />

(7)<br />

(10)<br />

p<br />

,<br />

p<br />

(11)<br />

C = c x = c q ( k − p k k )<br />

p p p p p p s2w 2,<br />

j<br />

j=<br />

1<br />

n<br />

∏<br />

(12)

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