Can I read Capacitated Two-Stage Multi-Item Production/Inventory Model with Joint Setup Costs on EtoBox?

Capacitated Two-Stage Multi-Item Production/Inventory Model with Joint Setup Costs by S. Anily; A. Federgruen is a Engineering article available to read on EtoBox.

What is Capacitated Two-Stage Multi-Item Production/Inventory Model with Joint Setup Costs about?

We analyze a continuous-time, two-stage production/inventory system. In the first stage, a common intermediate product is produced in batches, and possibly stored. In the second phase, the intermediate product is fabricated into n distinct finished products. Several finished products may be included in a single production batch of limited capacity to exploit economies of scale. We propose a planning methodology to address the combined problem of joint setup costs and capacity limits (per setup). We restrict ourselves to a class of replenishment strategies with the following properties: a replenishment strategy specifies a collection of families (subsets of items) covering all end-items, if an item belongs to several families a specific fraction of its sales is assigned to each family. Each time the inventory of one item in a family is replenished, the inventories of all other items in the family are replenished as well. We derive a simple (roughly 0(n log n)) algorithm that results in a strategy whose long-run average cost comes within a few percentage points of a lower bound for the minimum achievable cost (within the above class of strategies).

Who reads Capacitated Two-Stage Multi-Item Production/Inventory Model with Joint Setup Costs?

Author

S. Anily; A. Federgruen

Publisher

Institute for Operations Research and the Management Sciences (INFORMS)

Published

1991

Language

EN

Field

Engineering (Social Sciences)