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Coordination of Production/Distribution Networks with Unbalanced Leadtimes

Author

Listed:
  • Julien Bramel

    (Graduate School of Business, Columbia University, New York, New York 10027)

  • Shobhna Goyal

    (Graduate School of Business, Columbia University, New York, New York 10027)

  • Paul Zipkin

    (The Fuqua School of Business, Duke University, Durham, North Carolina 27708)

Abstract

We investigate multiproduct, multilocation production/distribution networks with deterministic, stationary demands. Most research on such systems assumes zero leadtimes. Methods using fixed reorder intervals that are power-of-two multiples of a base planning period have proved to be very successful for such systems. The same methods apply to networks with positive leadtimes, provided the leadtimes are balanced in a specific sense. We explore networks with general, unbalanced leadtimes. A key result is a lower bound on the cost of any feasible policy. Other results concern policy heuristics and their performance. For a large class of networks, we construct a policy whose cost is within 45% of the lower bound. For general networks, the performance guarantee is 1:02(sqrt)(1+(eta)), where (eta) is a number dependent on the network topology only. In general, the best performance bound is obtained by systematically reducing the order intervals derived from the corresponding zero-leadtime system.

Suggested Citation

  • Julien Bramel & Shobhna Goyal & Paul Zipkin, 2000. "Coordination of Production/Distribution Networks with Unbalanced Leadtimes," Operations Research, INFORMS, vol. 48(4), pages 570-577, August.
    • Handle: RePEc:inm:oropre:v:48:y:2000:i:4:p:570-577
    DOI: 10.1287/opre.48.4.570.12422
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    References listed on IDEAS

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