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Allocating Fibers in Cable Manufacturing

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Author Info

  • Daniel Adelman

    (Graduate School of Business, The University of Chicago, Chicago, Illinois 60637)

  • George L. Nemhauser

    (School of Industrial and Systems Engineering, Georgia Institute of Technology, Atlanta, Georgia 30332)

  • Mario Padron

    (Lucent Technologies, Atlanta Works, Norcross, Georgia 30071)

  • Robert Stubbs

    (Lucent Technologies, Atlanta Works, Norcross, Georgia 30071)

  • Ram Pandit

    (Consolidated Freightways, Inc., Portland, Oregon 97208-6696)

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    Abstract

    We study the problem of allocating stocked fibers to made-to-order cables with the goals of satisfying due dates and reducing the costs of scrap, setup, and fiber circulation. These goals are achieved by generating remnant fibers either long enough to satisfy future orders or short enough to scrap with little waste. They are also achieved by manufacturing concatenations, in which multiple cable orders are satisfied by the production of a single cable that is afterwards cut into the constituent cables ordered. We use a function that values fibers according to length, and which can be viewed as an approximation to the optimal value function of an underlying dynamic programming problem. The daily policy that arises under this approximation is an integer program with a simple linear objective function that uses changes in fiber value to take into account the multi-period consequences of decisions. We describe our successful implementation of this integer program in the factory, summarizing our computational experience as well as realized operational improvements.

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    File URL: http://dx.doi.org/10.1287/msom.1.1.21
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    Bibliographic Info

    Article provided by INFORMS in its journal Manufacturing & Service Operations Management.

    Volume (Year): 1 (1999)
    Issue (Month): 1 ()
    Pages: 21-35

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    Handle: RePEc:inm:ormsom:v:1:y:1999:i:1:p:21-35

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    Related research

    Keywords: Cable Manufacturing; Resource Pricing and Allocation; Remnant Inventory System; Discrete Optimization; Dynamic Programming Approximations;

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    Cited by:
    1. Rajgopal, Jayant & Wang, Zhouyan & Schaefer, Andrew J. & Prokopyev, Oleg A., 2011. "Integrated design and operation of remnant inventory supply chains under uncertainty," European Journal of Operational Research, Elsevier, vol. 214(2), pages 358-364, October.

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