IDEAS home Printed from https://ideas.repec.org/a/eee/proeco/v124y2010i2p408-413.html
   My bibliography  Save this article

Optimal multi-stage logistic and inventory policies with production bottleneck in a serial supply chain

Author

Listed:
  • Hsiao, Yu-Cheng
  • Lin, Yi
  • Huang, Yun-Kuei

Abstract

Bottleneck appears in a serial supply chain if the minimum production rate at all stages is smaller than the demand rate. Operation manager must focus on keeping the bottleneck stage fully utilized and forcing the other stages to produce in synch with the bottleneck. This study applies the lot size division method, the recursive tightening method, and the drum-buffer-rope strategy. A pull and reverse pull algorithm is designed to solve the multi-stage logistic and inventory problem with a production bottleneck in a serial supply chain. A numerical example is included to illustrate the algorithm procedures.

Suggested Citation

  • Hsiao, Yu-Cheng & Lin, Yi & Huang, Yun-Kuei, 2010. "Optimal multi-stage logistic and inventory policies with production bottleneck in a serial supply chain," International Journal of Production Economics, Elsevier, vol. 124(2), pages 408-413, April.
    • Handle: RePEc:eee:proeco:v:124:y:2010:i:2:p:408-413
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0925-5273(09)00449-6
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Andrew Z. Szendrovits, 1975. "Manufacturing Cycle Time Determination for a Multi-Stage Economic Production Quantity Model," Management Science, INFORMS, vol. 22(3), pages 298-308, November.
    2. Szendrovits, Andrew Z & Drezner, ZVI, 1980. "Optimizing multi-stage production with constant lot size and varying numbers of batches," Omega, Elsevier, vol. 8(6), pages 623-629.
    3. Bogaschewsky, Ronald W. & Buscher, Udo D. & Lindner, Gerd, 2001. "Optimizing multi-stage production with constant lot size and varying number of unequal sized batches," Omega, Elsevier, vol. 29(2), pages 183-191, April.
    4. S. K. Goyal, 1976. "Note--Note on "Manufacturing Cycle Time Determination for a Multi-Stage Economic Production Quantity Model"," Management Science, INFORMS, vol. 23(3), pages 332-333, November.
    5. Hsiao, Yu-Cheng, 2008. "Optimal single-cycle policies for the one-warehouse multi-retailer inventory/distribution system," International Journal of Production Economics, Elsevier, vol. 114(1), pages 219-229, July.
    6. Goyal, S. K. & Szendrovits, A. Z., 1986. "A constant lot size model with equal and unequal sized batch shipments between production stages," Engineering Costs and Production Economics, Elsevier, vol. 10(3), pages 203-210, March.
    7. Gérard P. Cachon & Paul H. Zipkin, 1999. "Competitive and Cooperative Inventory Policies in a Two-Stage Supply Chain," Management Science, INFORMS, vol. 45(7), pages 936-953, July.
    8. Vercellis, Carlo, 1999. "Multi-plant production planning in capacitated self-configuring two-stage serial systems," European Journal of Operational Research, Elsevier, vol. 119(2), pages 451-460, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Wang, Kung-Jeng & Lin, Y.S. & Yu, Jonas C.P., 2011. "Optimizing inventory policy for products with time-sensitive deteriorating rates in a multi-echelon supply chain," International Journal of Production Economics, Elsevier, vol. 130(1), pages 66-76, March.
    2. Hoai Le Thi & Duc Tran, 2014. "Optimizing a multi-stage production/inventory system by DC programming based approaches," Computational Optimization and Applications, Springer, vol. 57(2), pages 441-468, March.
    3. Wen-Tsung Ho & Shu-Fang Lai & Yun-Kuei Huang, 2014. "An Optimal Mixed Batch Shipment Policy for Multiple Items in a Single-Supplier Multiple-Retailer Integrated System," Journal of Optimization Theory and Applications, Springer, vol. 160(2), pages 636-658, February.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Wen-Tsung Ho & Jason Chao-Hsien Pan & Yu-Cheng Hsiao, 2012. "Optimizing Multi-stage Production for an Assembly-Type Supply Chain with Unequal Sized Batch Shipments," Journal of Optimization Theory and Applications, Springer, vol. 153(2), pages 513-531, May.
    2. Wen-Tsung Ho & Yu-Cheng Hsiao, 2014. "Optimal Mixed Batch Shipment Policy with Variable Safety Factor for the Single-Vendor Single-Buyer Production-Inventory System," Journal of Optimization Theory and Applications, Springer, vol. 161(2), pages 648-663, May.
    3. Hoai Le Thi & Duc Tran, 2014. "Optimizing a multi-stage production/inventory system by DC programming based approaches," Computational Optimization and Applications, Springer, vol. 57(2), pages 441-468, March.
    4. Bogaschewsky, Ronald W. & Buscher, Udo D. & Lindner, Gerd, 2001. "Optimizing multi-stage production with constant lot size and varying number of unequal sized batches," Omega, Elsevier, vol. 29(2), pages 183-191, April.
    5. Sarin, Subhash C. & Kalir, Adar A. & Chen, Ming, 2008. "A single-lot, unified cost-based flow shop lot-streaming problem," International Journal of Production Economics, Elsevier, vol. 113(1), pages 413-424, May.
    6. Hsiao, Yu-Cheng, 2008. "Integrated logistic and inventory model for a two-stage supply chain controlled by the reorder and shipping points with sharing information," International Journal of Production Economics, Elsevier, vol. 115(1), pages 229-235, September.
    7. Hoque, M.A., 2011. "An optimal solution technique to the single-vendor multi-buyer integrated inventory supply chain by incorporating some realistic factors," European Journal of Operational Research, Elsevier, vol. 215(1), pages 80-88, November.
    8. Wen-Tsung Ho & Shu-Fang Lai & Yun-Kuei Huang, 2014. "An Optimal Mixed Batch Shipment Policy for Multiple Items in a Single-Supplier Multiple-Retailer Integrated System," Journal of Optimization Theory and Applications, Springer, vol. 160(2), pages 636-658, February.
    9. D Biskup & M Feldmann, 2006. "Lot streaming with variable sublots: an integer programming formulation," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 57(3), pages 296-303, March.
    10. Hoque, M.A. & Kingsman, B.G., 2006. "Synchronization in common cycle lot size scheduling for a multi-product serial supply chain," International Journal of Production Economics, Elsevier, vol. 103(1), pages 316-331, September.
    11. Kimms, Alf & Drexl, Andreas, 1996. "Multi-level lot sizing: A literature survey," Manuskripte aus den Instituten für Betriebswirtschaftslehre der Universität Kiel 405, Christian-Albrechts-Universität zu Kiel, Institut für Betriebswirtschaftslehre.
    12. Kim, DaeSoo, 1999. "Optimal two-stage lot sizing and inventory batching policies," International Journal of Production Economics, Elsevier, vol. 58(3), pages 221-234, January.
    13. Zhai, Xin & Ward, James E. & Schwarz, Leroy B., 2011. "Coordinating a one-warehouse N-retailer distribution system under retailer-reporting," International Journal of Production Economics, Elsevier, vol. 134(1), pages 204-211, November.
    14. Jaber, Mohamad Y. & Khan, Mehmood, 2010. "Managing yield by lot splitting in a serial production line with learning, rework and scrap," International Journal of Production Economics, Elsevier, vol. 124(1), pages 32-39, March.
    15. Hoque, M. A. & Kingsman, B. G., 1995. "An optimal solution algorithm for the constant lot-size model with equal and unequal sized batch shipments for the single product multi-stage production system," International Journal of Production Economics, Elsevier, vol. 42(2), pages 161-174, December.
    16. Ouenniche, Jamal & Boctor, Fayez F., 2001. "The two-group heuristic to solve the multi-product, economic lot sizing and scheduling problem in flow shops," European Journal of Operational Research, Elsevier, vol. 129(3), pages 539-554, March.
    17. Yu, Yugang & Huang, George Q., 2010. "Nash game model for optimizing market strategies, configuration of platform products in a Vendor Managed Inventory (VMI) supply chain for a product family," European Journal of Operational Research, Elsevier, vol. 206(2), pages 361-373, October.
    18. Nils Rudi & Sandeep Kapur & David F. Pyke, 2001. "A Two-Location Inventory Model with Transshipment and Local Decision Making," Management Science, INFORMS, vol. 47(12), pages 1668-1680, December.
    19. Kevin H. Shang & Jing-Sheng Song & Paul H. Zipkin, 2009. "Coordination Mechanisms in Decentralized Serial Inventory Systems with Batch Ordering," Management Science, INFORMS, vol. 55(4), pages 685-695, April.
    20. Chaharsooghi, S. Kamal & Heydari, Jafar, 2010. "Supply chain coordination for the joint determination of order quantity and reorder point using credit option," European Journal of Operational Research, Elsevier, vol. 204(1), pages 86-95, July.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:proeco:v:124:y:2010:i:2:p:408-413. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/ijpe .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.