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Pooling in manufacturing: do opposites attract?

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Author Info

  • MLINAR, Tanja B.

    ()
    (Université catholique de Louvain, Louvain School of Management and CORE, Belgium)

  • CHEVALIER, Philippe

    ()
    (Université catholique de Louvain, Louvain School of Management and CORE, Belgium)

Abstract

In a stochastic environment pooling naturally leads to economies of scale, but heterogeneity can also create variability. In this article, we investigate this trade-off in the case of a manufacturing environment. Pooling for queueing systems has been widely investigated while much less attention has been given to manufacturing systems where jobs are given a due date upon arrival. In such system it is not the elapsed time until the actual completion of the job that counts, but rather the lead time that can be promised to the customer in order to guarantee a high service level. In this paper, we study the benefits of pooling stochastic systems in such manufacturing setting with multiple customer types. Our results demonstrate that, in stark contrast with what was previously observed in service environments, heterogeneity is generally not deteriorating performance. Furthermore, our analytical and simulation studies reveal that the benefits of pooling in terms of the expected sojourn time can serve as a good prediction for the benefits of pooling on the average due-date lead time in a wide range of situations.

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Bibliographic Info

Paper provided by Université catholique de Louvain, Center for Operations Research and Econometrics (CORE) in its series CORE Discussion Papers with number 2013040.

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Date of creation: 23 Jul 2013
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Handle: RePEc:cor:louvco:2013040

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Related research

Keywords: manufacturing; resource pooling; queueing; due dates;

References

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  1. Diwakar Gupta & Yigal Gerchak, 2002. "Quantifying Operational Synergies in a Merger/Acquisition," Management Science, INFORMS, vol. 48(4), pages 517-533, April.
  2. Avishai Mandelbaum & Martin I. Reiman, 1998. "On Pooling in Queueing Networks," Management Science, INFORMS, vol. 44(7), pages 971-981, July.
  3. Vinod, V. & Sridharan, R., 2011. "Simulation modeling and analysis of due-date assignment methods and scheduling decision rules in a dynamic job shop production system," International Journal of Production Economics, Elsevier, vol. 129(1), pages 127-146, January.
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  6. WANG, Kent & WANG, Shin-Huei & PAN, Zheyao, 2013. "Can federal reserve policy deviation explain response patterns of financial markets over time?," CORE Discussion Papers 2013029, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  7. Fleurbaey,Marc & Maniquet,François, 2011. "A Theory of Fairness and Social Welfare," Cambridge Books, Cambridge University Press, number 9780521715348, October.
  8. Ananth V. Iyer & Apurva Jain, 2004. "Modeling the Impact of Merging Capacity in Production-Inventory Systems," Management Science, INFORMS, vol. 50(8), pages 1082-1094, August.
  9. Koulamas, Christos & Kyparisis, George J., 2008. "Single-machine scheduling with waiting-time-dependent due dates," European Journal of Operational Research, Elsevier, vol. 191(2), pages 577-581, December.
  10. Cheng, T. C. E. & Gupta, M. C., 1989. "Survey of scheduling research involving due date determination decisions," European Journal of Operational Research, Elsevier, vol. 38(2), pages 156-166, January.
  11. John A. Buzacott, 1996. "Commonalities in Reengineered Business Processes: Models and Issues," Management Science, INFORMS, vol. 42(5), pages 768-782, May.
  12. Lawrence M. Wein & Philippe B. Chevalier, 1992. "A Broader View of the Job-Shop Scheduling Problem," Management Science, INFORMS, vol. 38(7), pages 1018-1033, July.
  13. Manuel Förster & Michel Grabisch & Agnieszka Rusinowska, 2012. "Ordered Weighted Averaging in Social Networks," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00746988, HAL.
  14. Jain, Apurva, 2007. "Value of capacity pooling in supply chains with heterogeneous customers," European Journal of Operational Research, Elsevier, vol. 177(1), pages 239-260, February.
  15. Lawrence M. Wein, 1991. "Due-Date Setting and Priority Sequencing in a Multiclass M/G/1 Queue," Management Science, INFORMS, vol. 37(7), pages 834-850, July.
  16. Sridharan, V. & Li, Xiaoming, 2008. "Improving delivery reliability by a new due-date setting rule," European Journal of Operational Research, Elsevier, vol. 186(3), pages 1201-1211, May.
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