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MFCA-based simulation analysis for production lot-size determination in a multi-variety and small-batch production system

Published: 08 December 2013 Publication History

Abstract

In the modern manufacturing industry, environmental considerations are part of numerous phases of production. Inappropriate production lot-size determination can generate substantial scrapped overdue stocks and idle processing, which lead to serious environmental burdens. In this paper, by simulating the Pull mode and back scheduling of a multi-variety and small-batch production system, large overstocks and other wastes caused by current production lot-size determination are traced. For comparison with the conventional cost accounting used in the original simulation model, a new environmental management accounting method, Material Flow Cost Accounting (MFCA), is introduced to identify negative products cost related to environmental impacts hidden in the production processes. After sensitivity analysis by gradually regulating the production lot-size, two regular changes in the negative products cost and the corresponding percentages in the total cost are observed. These change trends indicate that a reasonable determination strategy for production lot-size can improve both economic and environmental performances.

References

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Environmental Industries Office, Industrial Science and Technology Policy and Environment Bureau, Ministry of Economy, Trade and Industry, Japan. 2007. "Guide for Material Flow Cost Accounting (Ver.1)" http://www.meti.go.jp/policy/eco_business/pdf/mfca%20guide20070822.pdf.
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Environmental Industries Office, Industrial Science and Technology Policy and Environment Bureau, Ministry of Economy, Trade and Industry, Japan. 2010. "Material Flow Cost Accounting MFCA Case Examples" http://www.jmac.co.jp/mfca/thinking/data/MFCA_Case_example_e.pdf.
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  • (2014)Simulation for dedicated line small lot size manufacturingProceedings of the 2014 Winter Simulation Conference10.5555/2693848.2694184(2640-2648)Online publication date: 7-Dec-2014
  1. MFCA-based simulation analysis for production lot-size determination in a multi-variety and small-batch production system

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    cover image ACM Conferences
    WSC '13: Proceedings of the 2013 Winter Simulation Conference: Simulation: Making Decisions in a Complex World
    December 2013
    4386 pages
    ISBN:9781479920778

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    • IIE: Institute of Industrial Engineers
    • INFORMS-SIM: Institute for Operations Research and the Management Sciences: Simulation Society
    • ASA: American Statistical Association
    • SIGSIM: ACM Special Interest Group on Simulation and Modeling
    • SCS: Society for Modeling and Simulation International
    • ASIM: Arbeitsgemeinschaft Simulation
    • IEEE/SMCS: Institute of Electrical and Electronics Engineers/Systems, Man, and Cybernetics Society
    • NIST: National Institute of Standards & Technology

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    Published: 08 December 2013

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    • IIE
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    • ASIM
    • IEEE/SMCS
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    WSC '13: Winter Simulation Conference
    December 8 - 11, 2013
    D.C., Washington

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    • (2014)Simulation for dedicated line small lot size manufacturingProceedings of the 2014 Winter Simulation Conference10.5555/2693848.2694184(2640-2648)Online publication date: 7-Dec-2014

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