Determining Production and Inventory Parameters: An Integrated Simulation and Mavt Approach With Tradeoff Elicitation

Abstract

This study puts forward a multi-attribute decision model that determines good production and inventory parameter settings in make-to-stock (MTS) environments controlled by the Conwip (constant work-in-process) method. This model uses a discrete event simulation to evaluate the performance of a system in relation to work-in-process and a finished goods inventory. Based on Multi-Attribute Value Theory (MAVT), a compromise solution is found by taking into account the decision-maker's preferences and tradeoff judgments as to the attributes of cycle time, throughput rate, holding cost and stockout cost. A numerical application is given to illustrate the use of the proposed multi-attribute model which includes a sensitivity analysis.

Participation of Women in Logistics Through Innovation

“…Butthiswideinteractionwithdifferentareasofbusinessanditsenvironmentbrings asadisadvantagethatthestudyoflogisticsiscomplex.Bythissomemodelshave beencreatedtofacilitatetheirteaching,oneofthemistheLogisticsModelBasedon Positions(MoLoBaC) (Hernández,Hernández,&García,2018). Thethirdareaofknowledgethatisofinterestinthisworkismulticriteriamodels (Alietal.,2017;Ferretti&Montibeller,2016;Pamucaretal.,2017;Rylov&Reimer, 2014).InparticularareinterestingtheMultiattributeModels(MM) (Heinonen,2018;Pergher & Almeida, 2018;Tarazón et al 2016;Xiaetal.,2018).ButespeciallytheMultiattributeModelswithmultiplicative factors (MMwMf[MMcFm]),whichareverysimpletogenerateandimplement.The MMcFmhavethegreatadvantagethat,atthemomentofselectinganalternative,they offerclearinformationaboutthequalityofthesame.Inaddition,theseMMcFm,are endowedwithagreatflexibility,whichallowsthemtocontributetothesolutionof variouskindsofproblem.…”