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Lot streaming with supplier–manufacturer coordination

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  • Chung‐Lun Li
  • Wen‐Qiang Xiao

Abstract

Lot splitting refers to breaking a production lot into smaller sublots during production. Coordinating lot splitting decisions across multiple stages of a production process is a challenging task. Traditional lot splitting and lot streaming models implicitly assume that the entire system is operated and owned by the same firm, or there exists a coordinator who controls the operation of all machines in the system. In this paper, we consider the situation where the machines in a multiple‐stage production process are owned and managed by different companies. Every item in a given production lot has to go through the processing by the supplier's machine, followed by the manufacturer's machine, and so on. We develop and analyze coordination mechanisms that enable different parties in the supply chain to coordinate their lot splitting decisions so as to achieve a systemwide optimum. © 2004 Wiley Periodicals, Inc. Naval Research Logistics, 2004

Suggested Citation

  • Chung‐Lun Li & Wen‐Qiang Xiao, 2004. "Lot streaming with supplier–manufacturer coordination," Naval Research Logistics (NRL), John Wiley & Sons, vol. 51(4), pages 522-542, June.
    • Handle: RePEc:wly:navres:v:51:y:2004:i:4:p:522-542
    DOI: 10.1002/nav.20013
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    References listed on IDEAS

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    Cited by:

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    2. Cheng, Bayi & Leung, Joseph Y.-T. & Li, Kai & Yang, Shanlin, 2019. "Integrated optimization of material supplying, manufacturing, and product distribution: Models and fast algorithms," European Journal of Operational Research, Elsevier, vol. 277(1), pages 100-111.

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