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Allocating Fibers in Cable Manufacturing

Author

Listed:
  • Daniel Adelman

    (Graduate School of Business, The University of Chicago, Chicago, Illinois 60637)

  • George L. Nemhauser

    (School of Industrial and Systems Engineering, Georgia Institute of Technology, Atlanta, Georgia 30332)

  • Mario Padron

    (Lucent Technologies, Atlanta Works, Norcross, Georgia 30071)

  • Robert Stubbs

    (Lucent Technologies, Atlanta Works, Norcross, Georgia 30071)

  • Ram Pandit

    (Consolidated Freightways, Inc., Portland, Oregon 97208-6696)

Abstract

We study the problem of allocating stocked fibers to made-to-order cables with the goals of satisfying due dates and reducing the costs of scrap, setup, and fiber circulation. These goals are achieved by generating remnant fibers either long enough to satisfy future orders or short enough to scrap with little waste. They are also achieved by manufacturing concatenations, in which multiple cable orders are satisfied by the production of a single cable that is afterwards cut into the constituent cables ordered. We use a function that values fibers according to length, and which can be viewed as an approximation to the optimal value function of an underlying dynamic programming problem. The daily policy that arises under this approximation is an integer program with a simple linear objective function that uses changes in fiber value to take into account the multi-period consequences of decisions. We describe our successful implementation of this integer program in the factory, summarizing our computational experience as well as realized operational improvements.

Suggested Citation

  • Daniel Adelman & George L. Nemhauser & Mario Padron & Robert Stubbs & Ram Pandit, 1999. "Allocating Fibers in Cable Manufacturing," Manufacturing & Service Operations Management, INFORMS, vol. 1(1), pages 21-35.
  • Handle: RePEc:inm:ormsom:v:1:y:1999:i:1:p:21-35
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    File URL: http://dx.doi.org/10.1287/msom.1.1.21
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    References listed on IDEAS

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    1. Gregory Dobson & Uday S. Karmarkar & Jeffrey L. Rummel, 1987. "Batching to Minimize Flow Times on One Machine," Management Science, INFORMS, vol. 33(6), pages 784-799, June.
    2. Richard Bellman, 1957. "On a Dynamic Programming Approach to the Caterer Problem--I," Management Science, INFORMS, vol. 3(3), pages 270-278, April.
    3. Hau L. Lee & Christopher S. Tang, 1997. "Modelling the Costs and Benefits of Delayed Product Differentiation," Management Science, INFORMS, vol. 43(1), pages 40-53, January.
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    Cited by:

    1. repec:pal:jorsoc:v:58:y:2007:i:9:d:10.1057_palgrave.jors.2602274 is not listed on IDEAS
    2. Rajgopal, Jayant & Wang, Zhouyan & Schaefer, Andrew J. & Prokopyev, Oleg A., 2011. "Integrated design and operation of remnant inventory supply chains under uncertainty," European Journal of Operational Research, Elsevier, vol. 214(2), pages 358-364, October.

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