IDEAS home Printed from https://ideas.repec.org/a/eee/proeco/v165y2015icp90-99.html
   My bibliography  Save this article

Dynamic safety stock in co-production demand-driven wood remanufacturing mills: A case study

Author

Listed:
  • Rafiei, Rezvan
  • Nourelfath, Mustapha
  • Gaudreault, Jonathan
  • De Santa-Eulalia, Luis Antonio
  • Bouchard, Mathieu

Abstract

This paper studies the production planning problem of a wood remanufacturing mill involved with uncertain demands, a co-production system, sequence-dependent setup times and finite production capacity. The objective is to increase the service level and to keep the stock in a reasonable size. A mathematical model which includes a sequence-dependent setup time formulation is sketched as a base case. It is used with a periodic re-planning strategy. Then, in order to benefit from the idle production capacity, we propose a two-phase method combined with the periodic re-planning strategy. This method uses the idle production capacity in each period to build up safety stocks for the most important products. A simulation model is proposed to compare the performance of three variations of the method using industrial data. Numerical results indicate that the solutions of the proposed two-phase method are superior to the optimal solution of the base case model. Moreover, it is found that although the entire production capacity is used in the two-phase method, the stock size is negligibly augmented in the co-production system.

Suggested Citation

  • Rafiei, Rezvan & Nourelfath, Mustapha & Gaudreault, Jonathan & De Santa-Eulalia, Luis Antonio & Bouchard, Mathieu, 2015. "Dynamic safety stock in co-production demand-driven wood remanufacturing mills: A case study," International Journal of Production Economics, Elsevier, vol. 165(C), pages 90-99.
    • Handle: RePEc:eee:proeco:v:165:y:2015:i:c:p:90-99
    DOI: 10.1016/j.ijpe.2015.03.024
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0925527315000924
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.ijpe.2015.03.024?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Yang, Dar-Li & Kuo, Wen-Hung & Chern, Maw-Sheng, 2008. "Multi-family scheduling in a two-machine reentrant flow shop with setups," European Journal of Operational Research, Elsevier, vol. 187(3), pages 1160-1170, June.
    2. Spitter, J.M. & de Kok, A.G. & Dellaert, N.P., 2005. "Timing production in LP models in a rolling schedule," International Journal of Production Economics, Elsevier, vol. 93(1), pages 319-329, January.
    3. Helber, Stefan & Sahling, Florian & Schimmelpfeng, Katja, 2011. "Dynamic capacitated lot sizing with random demand and dynamic safety stocks," Hannover Economic Papers (HEP) dp-465, Leibniz Universität Hannover, Wirtschaftswissenschaftliche Fakultät.
    4. Beutel, Anna-Lena & Minner, Stefan, 2012. "Safety stock planning under causal demand forecasting," International Journal of Production Economics, Elsevier, vol. 140(2), pages 637-645.
    5. Persona, Alessandro & Battini, Daria & Manzini, Riccardo & Pareschi, Arrigo, 2007. "Optimal safety stock levels of subassemblies and manufacturing components," International Journal of Production Economics, Elsevier, vol. 110(1-2), pages 147-159, October.
    6. Vallada, Eva & Ruiz, Rubén, 2011. "A genetic algorithm for the unrelated parallel machine scheduling problem with sequence dependent setup times," European Journal of Operational Research, Elsevier, vol. 211(3), pages 612-622, June.
    7. Inderfurth, Karl & Minner, Stefan, 1998. "Safety stocks in multi-stage inventory systems under different service measures," European Journal of Operational Research, Elsevier, vol. 106(1), pages 57-73, April.
    8. Barry L. Nelson & Frank J. Matejcik, 1995. "Using Common Random Numbers for Indifference-Zone Selection and Multiple Comparisons in Simulation," Management Science, INFORMS, vol. 41(12), pages 1935-1945, December.
    9. Oner, Selma & Bilgic, Taner, 2008. "Economic lot scheduling with uncontrolled co-production," European Journal of Operational Research, Elsevier, vol. 188(3), pages 793-810, August.
    10. Allahverdi, Ali & Soroush, H.M., 2008. "The significance of reducing setup times/setup costs," European Journal of Operational Research, Elsevier, vol. 187(3), pages 978-984, June.
    11. Schaller, Jeffrey E. & Gupta, Jatinder N.D., 2008. "Single machine scheduling with family setups to minimize total earliness and tardiness," European Journal of Operational Research, Elsevier, vol. 187(3), pages 1050-1068, June.
    12. Pranzo, Marco, 2004. "Batch scheduling in a two-machine flow shop with limited buffer and sequence independent setup times and removal times," European Journal of Operational Research, Elsevier, vol. 153(3), pages 581-592, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Wang, Du-Juan & Yin, Yunqiang & Xu, Jianyou & Wu, Wen-Hsiang & Cheng, Shuenn-Ren & Wu, Chin-Chia, 2015. "Some due date determination scheduling problems with two agents on a single machine," International Journal of Production Economics, Elsevier, vol. 168(C), pages 81-90.
    2. Zied Bahroun & Nidhal Belgacem, 2019. "Determination of dynamic safety stocks for cyclic production schedules," Operations Management Research, Springer, vol. 12(1), pages 62-93, June.
    3. Curcio, Eduardo & Amorim, Pedro & Zhang, Qi & Almada-Lobo, Bernardo, 2018. "Adaptation and approximate strategies for solving the lot-sizing and scheduling problem under multistage demand uncertainty," International Journal of Production Economics, Elsevier, vol. 202(C), pages 81-96.
    4. Gonçalves, João N.C. & Sameiro Carvalho, M. & Cortez, Paulo, 2020. "Operations research models and methods for safety stock determination: A review," Operations Research Perspectives, Elsevier, vol. 7(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Barros, Júlio & Cortez, Paulo & Carvalho, M. Sameiro, 2021. "A systematic literature review about dimensioning safety stock under uncertainties and risks in the procurement process," Operations Research Perspectives, Elsevier, vol. 8(C).
    2. Zied Bahroun & Nidhal Belgacem, 2019. "Determination of dynamic safety stocks for cyclic production schedules," Operations Management Research, Springer, vol. 12(1), pages 62-93, June.
    3. Jin Xu & Natarajan Gautam, 2020. "On competitive analysis for polling systems," Naval Research Logistics (NRL), John Wiley & Sons, vol. 67(6), pages 404-419, September.
    4. Vincent Giard & Mustapha Sali, 2012. "Pilotage d'une chaîne logistique par une approche de type MRP dans un environnement partiellement aléatoire," Working Papers hal-00875497, HAL.
    5. A.C. Mahasinghe & L.A. Sarathchandra, 2020. "An Optimization Model for Production Planning in the Synthetic Fertilizer Industry," Advances in Decision Sciences, Asia University, Taiwan, vol. 24(3), pages 28-62, September.
    6. Vincent Giard & Mustapha Sali, 2012. "Monitoring of the upstream part of a supply chain dedicated to the customized mass production with a revisited version of MRP," Working Papers hal-00875498, HAL.
    7. repec:dau:papers:123456789/9020 is not listed on IDEAS
    8. Vincent Giard & Mustapha Sali, 2011. "Production à la commande et production pour stock dans un environnement MRP," Working Papers hal-00875557, HAL.
    9. Gonçalves, João N.C. & Sameiro Carvalho, M. & Cortez, Paulo, 2020. "Operations research models and methods for safety stock determination: A review," Operations Research Perspectives, Elsevier, vol. 7(C).
    10. Allahverdi, Ali & Ng, C.T. & Cheng, T.C.E. & Kovalyov, Mikhail Y., 2008. "A survey of scheduling problems with setup times or costs," European Journal of Operational Research, Elsevier, vol. 187(3), pages 985-1032, June.
    11. A.C. Mahasinghe & L.A. Sarathchandra, 2020. "An Optimization Model for Production Planning in the Synthetic Fertilizer Industry," International Association of Decision Sciences, Asia University, Taiwan, vol. 24(3), pages 28-62, September.
    12. Osman, Hany & Demirli, Kudret, 2012. "Integrated safety stock optimization for multiple sourced stockpoints facing variable demand and lead time," International Journal of Production Economics, Elsevier, vol. 135(1), pages 299-307.
    13. Allahverdi, Ali, 2015. "The third comprehensive survey on scheduling problems with setup times/costs," European Journal of Operational Research, Elsevier, vol. 246(2), pages 345-378.
    14. repec:dau:papers:123456789/9021 is not listed on IDEAS
    15. Oliver Hinz & Jochen Eckert, 2010. "The Impact of Search and Recommendation Systems on Sales in Electronic Commerce," Business & Information Systems Engineering: The International Journal of WIRTSCHAFTSINFORMATIK, Springer;Gesellschaft für Informatik e.V. (GI), vol. 2(2), pages 67-77, April.
    16. Prak, Dennis & Teunter, Ruud & Syntetos, Aris, 2017. "On the calculation of safety stocks when demand is forecasted," European Journal of Operational Research, Elsevier, vol. 256(2), pages 454-461.
    17. Dung-Ying Lin & Tzu-Yun Huang, 2021. "A Hybrid Metaheuristic for the Unrelated Parallel Machine Scheduling Problem," Mathematics, MDPI, vol. 9(7), pages 1-20, April.
    18. Timo Hilger & Florian Sahling & Horst Tempelmeier, 2016. "Capacitated dynamic production and remanufacturing planning under demand and return uncertainty," OR Spectrum: Quantitative Approaches in Management, Springer;Gesellschaft für Operations Research e.V., vol. 38(4), pages 849-876, October.
    19. Hong, Zhaofu & Dai, Wei & Luh, Hsing & Yang, Chenchen, 2018. "Optimal configuration of a green product supply chain with guaranteed service time and emission constraints," European Journal of Operational Research, Elsevier, vol. 266(2), pages 663-677.
    20. Halkos, George & Kevork, Ilias, 2012. "Unbiased estimation of maximum expected profits in the Newsvendor Model: a case study analysis," MPRA Paper 40724, University Library of Munich, Germany.
    21. Yung-Chia Chang & Kuei-Hu Chang & Ching-Ping Zheng, 2022. "Application of a Non-Dominated Sorting Genetic Algorithm to Solve a Bi-Objective Scheduling Problem Regarding Printed Circuit Boards," Mathematics, MDPI, vol. 10(13), pages 1-21, July.
    22. Meng Qi & Ying Cao & Zuo-Jun (Max) Shen, 2022. "Distributionally Robust Conditional Quantile Prediction with Fixed Design," Management Science, INFORMS, vol. 68(3), pages 1639-1658, March.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:proeco:v:165:y:2015:i:c:p:90-99. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/ijpe .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.