Modeling and analysis of integrated planning of production and engineering process improvement

A clearing function that can capture the nonlinear relationship between workloads and throughput and also reflect capacity improvement by engineering activities on a multioperation workcenter is developed and implemented in an integrated model for planning both production and engineering process improvement. Marginal cost analysis through Karush-Kuhn-Tucker(KKT) optimality conditions provides useful insight into effective management of resources in a reentrant manufacturing system.