Advanced Search
MyIDEAS: Login to save this article or follow this journal

A master production scheduling procedure for stochastic demand and rolling planning horizons

Contents:

Author Info

  • Vargas, Vicente
  • Metters, Richard
Registered author(s):

    Abstract

    The problem of interest is a one product, uncapacitated master production schedule (MPS) in which decisions are made under rolling planning horizons. Demand is stochastic and time varying, and effectiveness is measured by inventory holding, production setup, and backorder costs. Typically, in both the research literature and the business practice the stochastic nature of the problem is modeled in an ad hoc fashion. The stochastic MPS problem is usually solved by adding safety stock to production quantities obtained from a deterministic lot-sizing algorithm. Here, the stochastic nature of the problem is explicitly considered, as an optimal algorithm for solving the static probabilistic dynamic lot-sizing problem is adapted to rolling planning horizons. The resulting algorithm is found to dominate traditional approaches over a wide variety of experimental factors, reducing total costs by an average of 16% over traditional methods.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://www.sciencedirect.com/science/article/pii/S0925527311002003
    Download Restriction: Full text for ScienceDirect subscribers only

    As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

    Bibliographic Info

    Article provided by Elsevier in its journal International Journal of Production Economics.

    Volume (Year): 132 (2011)
    Issue (Month): 2 (August)
    Pages: 296-302

    as in new window
    Handle: RePEc:eee:proeco:v:132:y:2011:i:2:p:296-302

    Contact details of provider:
    Web page: http://www.elsevier.com/locate/ijpe

    Related research

    Keywords: Inventory management Master production scheduling Simulation;

    References

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
    as in new window
    1. Harvey M. Wagner & Thomson M. Whitin, 1958. "Dynamic Version of the Economic Lot Size Model," Management Science, INFORMS, INFORMS, vol. 5(1), pages 89-96, October.
    2. Dawande, Milind & Gavirneni, Srinagesh & Naranpanawe, Sanjeewa & Sethi, Suresh P., 2009. "Discrete forecast horizons for two-product variants of the dynamic lot-size problem," International Journal of Production Economics, Elsevier, Elsevier, vol. 120(2), pages 430-436, August.
    3. Vargas, Vicente, 2009. "An optimal solution for the stochastic version of the Wagner-Whitin dynamic lot-size model," European Journal of Operational Research, Elsevier, vol. 198(2), pages 447-451, October.
    4. James H. Bookbinder & Jin-Yan Tan, 1988. "Strategies for the Probabilistic Lot-Sizing Problem with Service-Level Constraints," Management Science, INFORMS, INFORMS, vol. 34(9), pages 1096-1108, September.
    5. Samuel Karlin, 1960. "Dynamic Inventory Policy with Varying Stochastic Demands," Management Science, INFORMS, INFORMS, vol. 6(3), pages 231-258, April.
    6. Richard Ehrhardt, 1979. "The Power Approximation for Computing (s, S) Inventory Policies," Management Science, INFORMS, INFORMS, vol. 25(8), pages 777-786, August.
    7. V. Sridharan & William L. Berry & V. Udayabhanu, 1987. "Freezing the Master Production Schedule Under Rolling Planning Horizons," Management Science, INFORMS, INFORMS, vol. 33(9), pages 1137-1149, September.
    8. Cardós, Manuel & Babiloni, Eugenia, 2011. "Exact and approximate calculation of the cycle service level in periodic review inventory policies," International Journal of Production Economics, Elsevier, Elsevier, vol. 131(1), pages 63-68, May.
    9. Rezaei, Jafar & Davoodi, Mansoor, 2011. "Multi-objective models for lot-sizing with supplier selection," International Journal of Production Economics, Elsevier, Elsevier, vol. 130(1), pages 77-86, March.
    10. Liao, Gwo-Liang & Sheu, Shey-Huei, 2011. "Economic production quantity model for randomly failing production process with minimal repair and imperfect maintenance," International Journal of Production Economics, Elsevier, Elsevier, vol. 130(1), pages 118-124, March.
    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 in new window

    Cited by:
    1. Gahm, Christian & Dünnwald, Bastian & Sahamie, Ramin, 2014. "A multi-criteria master production scheduling approach for special purpose machinery," International Journal of Production Economics, Elsevier, Elsevier, vol. 149(C), pages 89-101.
    2. Lee, Shine-Der & Lan, Shu-Chuan, 2013. "Production lot sizing with a secondary outsourcing facility," International Journal of Production Economics, Elsevier, Elsevier, vol. 141(1), pages 414-424.

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:eee:proeco:v:132:y:2011:i:2:p:296-302. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei).

    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 references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.

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