Staged Improvement of Delivery-oriented Production

This study proposes a system dynamics (SD) model to deal with the staged improvement of delivery-orientated production plan. The situations, such as the cycle time affected by total input of human resource, unit transportation cost influenced by amount of delivery quantity, unit penalty (shortage) cost affected by amount of shortages, and the time delay among customer demand, production demand, order quantity, material demand, and inventory are discussed. A dynamic approach to adjusting enterprise’s policy for conforming customers’ satisfactions is a practical problem, but past studies lack discussions. Therefore, this work aims to construct a dynamic approach for conforming the customers’ satisfactions. Research results reveal that the increment of production capacity and replenishment material policy could lead the shortage reduction, but do not achieve the complete improvement “none shortage”. Decreasing the affection of time delay would bring the production reaching the complete improvement. (Received in November 2013, accepted in August 2014. This paper was with the author 1 month for 1 revision.)