An iterative approach to item-level tactical production and inventory planning
AbstractIn this paper, we propose an iterative approach to jointly solve the problems of tactical safety stock placement and tactical production planning. These problems have traditionally been solved in isolation, even though both problems operate in the same decision making space and the outputs of one naturally serve as the inputs to the other. For simple supply chain network structures, two stages and one or many products, we provide sufficient conditions to guarantee the iteration algorithm's termination. Through examples, we show how the algorithm works and prove its applicability on a realistic industrial-scale problem.
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Bibliographic InfoArticle provided by Elsevier in its journal International Journal of Production Economics.
Volume (Year): 133 (2011)
Issue (Month): 1 (September)
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Web page: http://www.elsevier.com/locate/ijpe
Inventory Production Hierarchical planning Supply chain management;
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