Cost Optimization of Dynamic Service Reliability: A Case Study of Demand Fulfillment on Enterprise
Authors: Mudjahidin Mudjahidin, Joko Lianto Buliali, Muhammad Nur Yuniarto
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As a system, private industrial network (PIN) could be computed its service reliability for a specific duration time where the service reliability has two cost components (reliability costs and unreliability cost) which opposite and non-linear. Furthermore, in the PIN, service reliability could have the effect to demand, and the demand also influenced by the external factor. For this reason, we propose a computation of service reliability and find the optimized service time, which can minimize the total reliability cost and unreliability cost for a specific duration time. Furthermore, in this proposed model, reliability and external have the effect to demand. Based on the case study, we implement and simulate the model with random service time, and, as an improvement, we simulate again the model by substitute random service time with optimized service time. The simulation results show the different dynamic value of demand, reliability, average reliability, reliability cost and unreliability cost, where the results from the simulation with optimized service time are mostly better than the simulation with random service time. The total reliability cost of service does not all decrease, but the overall total reliability cost decreases, that is $ 3,409,315 became $ 313,595.