A capacity constrained production-inventory system with stochastic demand and production times

Axsäter, Sven

doi:10.1080/00207540903283808

Cited by 12 publications

(4 citation statements)

References 7 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Their model is then generalised to consider periodically varying parameters (Aviv and Federgruen 1997), periodic demand (Kapuściński and Tayur 1998), fixed/set-up costs (e.g. Gallego and Scheller-Wolf 2000;Özer and Wei 2004) advance demand (Özer and Wei 2004), and variations in production times (Axsäter 2010). Kovalyov and Pesch (2014) recently suggest a O (n log n) time algorithm for the single-item 2 Q.…”

Section: Related Literaturementioning

confidence: 99%

Optimal policies of a two-echelon serial inventory system with general limited capacities

Sun

et al. 2015

International Journal of Production Research

View full text Add to dashboard Cite

We study optimal policies of capacitated two-echelon serial inventory systems under periodic review. For a system with smaller downstream capacity, we fully characterise the optimal policy as a further modified echelon base stock policy using an intuitive backward induction. The key lies in the magnitude relation between the initial upstream stock level and the downstream capacity. For a system with smaller upstream capacity, we demonstrate that the optimal policy is of a more complex structure where there can be at most four/five target levels up to which the upstream/downstream echelon tries to produce/order. The numbers of levels and their values depend on the length of remaining horizons and the amount of initial upstream inventories. We also specify these potential target levels and then suggest a way to simplify the search of optimal solutions.

show abstract

Section: Related Literaturementioning

confidence: 99%

Optimal policies of a two-echelon serial inventory system with general limited capacities

Sun

et al. 2015

International Journal of Production Research

View full text Add to dashboard Cite

show abstract

“…As a result, the current study aims to design a queue system to alleviate the congestion of customers waited to receive service. Axsäter (2010) developed a production-inventory model affected by traffic density with Poisson demand and Gamma service time distribution and used an M/G/1 queue system to deal with the traffic of the system. Here, the demand follows a fuzzy Poisson distribution (Vahdani and Mohammadi, 2015) and the service time of machines follows an exponential distribution (Pardo and de la Fuente, 2008).…”

Section: Problem Statement and Mathematical Modelingmentioning

confidence: 99%

Designing an uncertain bi-objective green leagile capacitated lot sizing problem considering FM/M/C queue system

Rabbani

Bosjin

Manavizadeh

et al. 2021

JM2

View full text Add to dashboard Cite

Purpose This paper aims to present a novel bi-objective mathematical model for a production-inventory system under uncertainty. Design/methodology/approach This paper addresses agile and lean manufacturing concepts alongside with green production methods to design an integrated capacitated lot sizing problem (CLSP). From a methodological perspective, the problem is solved in three phases. In the first step, an FM/M/C queuing system is used to minimize the number of customers waited to receive their orders. In the second step, an effective approach is applied to deal with the fuzzy bi-objective model and finally, a hybrid metaheuristic algorithm is used to solve the problem. Findings Some numerical test problems and sensitivity analyzes are conducted to measure the efficiency of the proposed model and the solution method. The results validate the model and the performance of the solution method compared to Gams results in small size test problems and prove the superiority of the hybrid algorithm in comparison with the other well-known metaheuristic algorithms in large size test problems. Originality/value This paper presents a novel bi-objective mathematical model for a CLSP under uncertainty. The proposed model is conducted on a practical case and several sensitivity analysis are conducted to assess the behavior of the model. Using a queue system, this problem aims to reduce the items waited in the queue to receive service. Two objective functions are considered to maximize the profit and minimize the negative environmental effects. In this regard, the second objective function aims to reduce the amount of emitted carbon.

show abstract

“…The safety stock decision is included in base-stock (or reorder-point) inventory models because the base-stock (or reorder-point) usually includes a safety stock. Relevant inventory models for the current study are capacitated multi-item models such as Sox, Thomas, and McClain (1997) and Axsäter (2010). These models have in common that either safety stock or base-stock for more than one item is decided using a predefined production or replenishment lead time distribution.…”

Section: Relevant Literaturementioning

confidence: 99%

Effect of limited capacity on optimal planning parameters for a multi-item production system with setup times and advance demand information

Altendorfer

2018

International Journal of Production Research

View full text Add to dashboard Cite

An analytical production/inventory model to optimise the planning parameters lot-size, safety stock and planned lead time is developed for a stochastic single-stage production system with multiple items and limited capacity. Based on queuing analysis, the influence of item specific lot-sizes on the production lead time distribution is modelled. Applying stochastic advance demand information, the expected values for finished-goods-inventory, backorders and service level are explicitly stated. Numerical optimisation is applied to solve the respective cost minimisation problem and a solution heuristic is developed to support this approach. A numerical study provides managerial insights concerning capacity limitation effects on the optimal planning parameters. Higher shop loads, i.e. tighter capacity constraints, are found to significantly increase optimal lot-size and optimal safety stock. Safety stock and planned lead time are substitutes, an increase of both leads to higher FGI and lower backorders, however, the specific trade-off depends on the demand information quality. A sensitivity analysis investigating other (non-) financial system parameters is conducted as well. The main contribution of this paper is that the interaction of different planning parameters, i.e. lot-size, safety stock and planned lead time, for different items is simultaneously studied for a capacity constrained production/inventory system.

show abstract

A capacity constrained production-inventory system with stochastic demand and production times

Cited by 12 publications

References 7 publications

Optimal policies of a two-echelon serial inventory system with general limited capacities

Optimal policies of a two-echelon serial inventory system with general limited capacities

Designing an uncertain bi-objective green leagile capacitated lot sizing problem considering FM/M/C queue system

Effect of limited capacity on optimal planning parameters for a multi-item production system with setup times and advance demand information

Contact Info

Product

Resources

About