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Evaluation of the Impact of Uncertain Advance Demand Information on Production/Inventory Systems

Author

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  • Mohammed Hichame Benbitour

    (LGI - Laboratoire Génie Industriel - EA 2606 - CentraleSupélec)

  • Evren Sahin

    (LGI - Laboratoire Génie Industriel - EA 2606 - CentraleSupélec)

Abstract

In this paper, we conduct a simulation study to evaluate the impact of using imperfect advance demand information (ADI) in a single stage production/inventory system. We mean by ADI the fact that the production system receives customer orders in advance of their due-dates. We consider four types of ADI: 1) Perfect ADI, 2) ADI with imperfect due-dates, 3) ADI with imperfect demand quantities and 4) ADI with updates. The production system is controlled by a modified base-stock policy which has two parameters that are S, the base-stock level, and L, the production release lead time. We intend to shed light on the impact of imperfect ADI (ADI types 2, 3, 4) on the performance of production/inventory systems. The aim of the simulation study is twofold. Firstly, the objective is to find the optimal parameters of the modified base-stock policy and secondly, to evaluate the benefits of imperfect ADI in a production/inventory system.

Suggested Citation

  • Mohammed Hichame Benbitour & Evren Sahin, 2015. "Evaluation of the Impact of Uncertain Advance Demand Information on Production/Inventory Systems," Post-Print hal-01199290, HAL.
    • Handle: RePEc:hal:journl:hal-01199290
    DOI: 10.1016/j.ifacol.2015.06.337
    Note: View the original document on HAL open archive server: https://hal.science/hal-01199290
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    References listed on IDEAS

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