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Journal of Materials Sciences and Applications

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The Duration of Production with Two Related Materials

Journal of Materials Sciences and Applications
Vol.3 , No. 5, Publication Date: Aug. 29, 2017, Page: 66-70

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Authors

[1]	Hui-Hsin Huang, Department of Business Administration, Aletheia University, New Taipei City, Taiwan.

Abstract

In the manufacturing process, firms should estimate the duration of materials demand to make sure the productions scheduling and output. Most products manufacturing are consist from more than one material and the relations of each material may be substitutes or complements. The downstream manufactures may order materials from different sources of upstream. Thus to predict the duration of more than one relative material demand is an important topic. This paper bases on Farlie-Gumbel-Morgenstern family model to predict the duration of two relative materials (substitutes or complements). In the proposed model, the parameter of correlation can reflect the material relations of complementary or substitute. Thus, this joint model can describe not only complementary but also substitute context. For more practical, the empirical data are used to estimate the parameters of the proposed model and to test the model validation. The results show the correlations of these two materials are negative. It means they are substitutes relations. And there is good fitness between empirical data and simulation data in the proposed model. Finally the discussion and conclusions are made for practical application.

Keywords

Duration of Materials Demand, Substitutes, Complements, Farlie-Gumbel-Morgenstern Family Model

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