Planning capacity and safety stocks in a serial production–distribution system with multiple products

Abstract

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Finite inventory budgets in production capacity and safety stock placement under the guaranteed service approach

“…Table 9 shows that when inventory budget constraints are introduced in Scenarios 2, 3, and 4, both production and inventory decisions are changed compared to Scenario 1, in which inventory budgets are infinite. This result is not in line with the observations of Ghadimi and Aouam (2021) who find that inventory budgets affect inventory decisions but not production decisions. We conclude that their results only hold in the case of a serial system with one manufacturer, one inventory-constrained warehouse, and one retailer.…”

“…They develop a constant base stock policy with censored ordering, where the replenishment orders are censored by the storage constraint. Ghadimi and Aouam (2021) study a serial supply chain network consisting of one manufacturer operating multiple workcenters, one warehouse with limited storage capacity, and one retailer. They formulate a problem to optimize capacity allocation to workcenters and safety stock placement at the warehouse and retailer.…”

“…They propose a censored-base stock policy and a dynamic programming algorithm to set inventory targets for supply chains with a spanning tree network. Ghadimi and Aouam (2021) impose a limit on the maximum inventory at the warehouse in a serial system, with one manufacturer supplying a warehouse and a retailer. They prove analytically that the well-known all-or-nothing property in serial systems under GSA does not hold when the storage space at the warehouse is low.…”

Multi-Period Mixed Integer Programming Model for Supply Chain Planning Under Safety Stock

“…A twostage stochastic mixed integer programming formulation is proposed to determine integrated productiondistribution decisions in dairy products supply chain (Guarnaschelli et al, 2020). Optimal production capacity and safety stock levels in a multi-product serial production-distribution network are determined under guaranteed service approach (Ghadimi and Aouam, 2021). The problem of the study is formulated as a nonconvex program subject to budget limitation and solution is obtained by developing a nested Lagrangian relaxation algorithm.…”

Integrated scheduling of distributed production and distribution in group manufacturing with uncertain travel time

“…Production and distribution are two crucial activities in group manufacturing [ 1 ], and their scheduled planning are separately treated in most cases [ 2 ]. However, this decentralized approach leads to inefficiency, due to the complex organizational structure and untimely information transmission in manufacturing group.…”