IDEAS home Printed from https://ideas.repec.org/a/inm/oropre/v48y2000i5p811-819.html
   My bibliography  Save this article

Dynamic Scheduling in a Make-to-Stock System: A Partial Characterization of Optimal Policies

Author

Listed:
  • Francis De Vericourt

    (Laboratoire d'Informatique de Paris 6 (LIP6-CNRS), Universite Pierre et Marie Curie, Paris, France)

  • Fikri Karaesmen

    (Laboratoire Productique Logistique, Ecole Centrale Paris, Chatenay-malabry, France)

  • Yves Dallery

    (Laboratoire Productique Logistique, Ecole Centrale Paris, Chatenay-malabry, France)

Abstract

We consider the problem of dynamically allocating production capacity between two products to minimize the average inventory and backorder costs per unit time in a make-to-stock single machine system. Using sample path comparisons and dynamic programming, we give a characterization of the optimal hedging point policy for a certain region of the state space. The characterization is simple enough to lead to easily implementable heuristics and provides a formal justification of some of the earlier heuristics proposed.

Suggested Citation

  • Francis De Vericourt & Fikri Karaesmen & Yves Dallery, 2000. "Dynamic Scheduling in a Make-to-Stock System: A Partial Characterization of Optimal Policies," Operations Research, INFORMS, vol. 48(5), pages 811-819, October.
    • Handle: RePEc:inm:oropre:v:48:y:2000:i:5:p:811-819
    DOI: 10.1287/opre.48.5.811.12404
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1287/opre.48.5.811.12404
    Download Restriction: no
    File URL: https://libkey.io/10.1287/opre.48.5.811.12404?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
    ---><---

    References listed on IDEAS

    as
    1. N. Srivatsan & Yves Dallery, 1998. "Partial Characterization of Optimal Hedging Point Policies in Unreliable Two-Part-Type Manufacturing Systems," Operations Research, INFORMS, vol. 46(1), pages 36-45, February.
    2. Lawrence M. Wein, 1992. "Dynamic Scheduling of a Multiclass Make-to-Stock Queue," Operations Research, INFORMS, vol. 40(4), pages 724-735, August.
    3. T. Bielecki & P. R. Kumar, 1988. "Optimality of Zero-Inventory Policies for Unreliable Manufacturing Systems," Operations Research, INFORMS, vol. 36(4), pages 532-541, August.
    4. Yu-Sheng Zheng & Paul Zipkin, 1990. "A Queueing Model to Analyze the Value of Centralized Inventory Information," Operations Research, INFORMS, vol. 38(2), pages 296-307, April.
    5. Paul H. Zipkin, 1995. "Performance Analysis of a Multi-Item Production-Inventory System Under Alternative Policies," Management Science, INFORMS, vol. 41(4), pages 690-703, April.
    6. Albert Y. Ha, 1997. "Optimal Dynamic Scheduling Policy for a Make-To-Stock Production System," Operations Research, INFORMS, vol. 45(1), pages 42-53, February.
    7. Agnes Peña Perez & Paul Zipkin, 1997. "Dynamic Scheduling Rules for a Multiproduct Make-to-Stock Queue," Operations Research, INFORMS, vol. 45(6), pages 919-930, December.
    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. José Niño-Mora, 2006. "Restless Bandit Marginal Productivity Indices, Diminishing Returns, and Optimal Control of Make-to-Order/Make-to-Stock M/G/1 Queues," Mathematics of Operations Research, INFORMS, vol. 31(1), pages 50-84, February.
    2. Rezaei Somarin, Aghil & Chen, Songlin & Asian, Sobhan & Wang, David Z.W., 2017. "A heuristic stock allocation rule for repairable service parts," International Journal of Production Economics, Elsevier, vol. 184(C), pages 131-140.
    3. Hasan Arslan & Stephen C. Graves & Thomas A. Roemer, 2007. "A Single-Product Inventory Model for Multiple Demand Classes," Management Science, INFORMS, vol. 53(9), pages 1486-1500, September.
    4. Fernando Bernstein & Francis de Véricourt, 2008. "Competition for Procurement Contracts with Service Guarantees," Operations Research, INFORMS, vol. 56(3), pages 562-575, June.
    5. Saif Benjaafar & Yanzhi Li & Dongsheng Xu & Samir Elhedhli, 2008. "Demand Allocation in Systems with Multiple Inventory Locations and Multiple Demand Sources," Manufacturing & Service Operations Management, INFORMS, vol. 10(1), pages 43-60, October.
    6. Süleyman Demirel & Izak Duenyas & Roman Kapuscinski, 2015. "Production and Inventory Control for a Make-to-Stock/Calibrate-to-Order System with Dedicated and Shared Resources," Operations Research, INFORMS, vol. 63(4), pages 823-839, August.
    7. William Liang & Barış Balcıog̃lu & Robert Svaluto, 2013. "Scheduling policies for a repair shop problem," Annals of Operations Research, Springer, vol. 211(1), pages 273-288, December.
    8. Satır, Benhür & Erenay, Fatih Safa & Bookbinder, James H., 2018. "Shipment consolidation with two demand classes: Rationing the dispatch capacity," European Journal of Operational Research, Elsevier, vol. 270(1), pages 171-184.
    9. Hossein Abouee-Mehrizi & Opher Baron & Oded Berman, 2014. "Exact Analysis of Capacitated Two-Echelon Inventory Systems with Priorities," Manufacturing & Service Operations Management, INFORMS, vol. 16(4), pages 561-577, October.
    10. Zeynep Turgay & Fikri Karaesmen & E. Örmeci, 2015. "A dynamic inventory rationing problem with uncertain demand and production rates," Annals of Operations Research, Springer, vol. 231(1), pages 207-228, August.
    11. Felix Papier & Ulrich W. Thonemann, 2010. "Capacity Rationing in Stochastic Rental Systems with Advance Demand Information," Operations Research, INFORMS, vol. 58(2), pages 274-288, April.
    12. Chen Shaoxiang, 2004. "The Optimality of Hedging Point Policies for Stochastic Two-Product Flexible Manufacturing Systems," Operations Research, INFORMS, vol. 52(2), pages 312-322, April.
    13. Ioannis Ch. Paschalidis & Yong Liu, 2003. "Large Deviations-Based Asymptotics for Inventory Control in Supply Chains," Operations Research, INFORMS, vol. 51(3), pages 437-460, June.
    14. Bora Kat & Zeynep Avṣar, 2011. "Using aggregate fill rate for dynamic scheduling of multi-class systems," Annals of Operations Research, Springer, vol. 182(1), pages 87-117, January.
    15. H. G. H. Tiemessen & M. Fleischmann & G. J. Houtum, 2017. "Dynamic control in multi-item production/inventory systems," OR Spectrum: Quantitative Approaches in Management, Springer;Gesellschaft für Operations Research e.V., vol. 39(1), pages 165-191, January.
    16. Apurva Jain, 2006. "Priority and dynamic scheduling in a make‐to‐stock queue with hyperexponential demand," Naval Research Logistics (NRL), John Wiley & Sons, vol. 53(5), pages 363-382, August.
    17. Jing-Sheng Song & Yue Zhang, 2020. "Stock or Print? Impact of 3-D Printing on Spare Parts Logistics," Management Science, INFORMS, vol. 66(9), pages 3860-3878, September.
    18. Jemai, Zied & Karaesmen, Fikri, 2005. "The influence of demand variability on the performance of a make-to-stock queue," European Journal of Operational Research, Elsevier, vol. 164(1), pages 195-205, July.
    19. Saif Benjaafar & Mohsen ElHafsi & Francis de Véricourt, 2004. "Demand Allocation in Multiple-Product, Multiple-Facility, Make-to-Stock Systems," Management Science, INFORMS, vol. 50(10), pages 1431-1448, October.
    20. P. Escalona & F. Ordóñez & I. Kauak, 2017. "Critical level rationing in inventory systems with continuously distributed demand," OR Spectrum: Quantitative Approaches in Management, Springer;Gesellschaft für Operations Research e.V., vol. 39(1), pages 273-301, January.
    21. Somarin, Aghil Rezaei & Sharma, Pankaj & Tiwari, Sunil & Chen, Songlin, 2023. "Stock reallocation policy for repairable service parts in case of supply disruptions due to extreme weather events," International Journal of Production Economics, Elsevier, vol. 256(C).
    22. José Niño-Mora, 2007. "Dynamic priority allocation via restless bandit marginal productivity indices," TOP: An Official Journal of the Spanish Society of Statistics and Operations Research, Springer;Sociedad de Estadística e Investigación Operativa, vol. 15(2), pages 161-198, December.
    23. Francis de Véricourt & Fikri Karaesmen & Yves Dallery, 2002. "Optimal Stock Allocation for a Capacitated Supply System," Management Science, INFORMS, vol. 48(11), pages 1486-1501, November.
    24. N Sanajian & H Abouee-Mehrizi & B Balcıog̃lu, 2010. "Scheduling policies in the M/G/1 make-to-stock queue," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 61(1), pages 115-123, January.

    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. Bora Kat & Zeynep Avṣar, 2011. "Using aggregate fill rate for dynamic scheduling of multi-class systems," Annals of Operations Research, Springer, vol. 182(1), pages 87-117, January.
    2. William Liang & Barış Balcıog̃lu & Robert Svaluto, 2013. "Scheduling policies for a repair shop problem," Annals of Operations Research, Springer, vol. 211(1), pages 273-288, December.
    3. Chen Shaoxiang, 2004. "The Optimality of Hedging Point Policies for Stochastic Two-Product Flexible Manufacturing Systems," Operations Research, INFORMS, vol. 52(2), pages 312-322, April.
    4. Ganesh Janakiraman & Mahesh Nagarajan & Senthil Veeraraghavan, 2018. "Simple Policies for Managing Flexible Capacity," Manufacturing & Service Operations Management, INFORMS, vol. 20(2), pages 333-346, May.
    5. H. G. H. Tiemessen & M. Fleischmann & G. J. Houtum, 2017. "Dynamic control in multi-item production/inventory systems," OR Spectrum: Quantitative Approaches in Management, Springer;Gesellschaft für Operations Research e.V., vol. 39(1), pages 165-191, January.
    6. N Sanajian & H Abouee-Mehrizi & B Balcıog̃lu, 2010. "Scheduling policies in the M/G/1 make-to-stock queue," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 61(1), pages 115-123, January.
    7. Dimitris Bertsimas & Ioannis Ch. Paschalidis, 2001. "Probabilistic Service Level Guarantees in Make-to-Stock Manufacturing Systems," Operations Research, INFORMS, vol. 49(1), pages 119-133, February.
    8. Ioannis Ch. Paschalidis & Yong Liu, 2003. "Large Deviations-Based Asymptotics for Inventory Control in Supply Chains," Operations Research, INFORMS, vol. 51(3), pages 437-460, June.
    9. David M. Markowitz & Lawrence M. Wein, 2001. "Heavy Traffic Analysis of Dynamic Cyclic Policies: A Unified Treatment of the Single Machine Scheduling Problem," Operations Research, INFORMS, vol. 49(2), pages 246-270, April.
    10. Saif Benjaafar & Mohsen ElHafsi & Francis de Véricourt, 2004. "Demand Allocation in Multiple-Product, Multiple-Facility, Make-to-Stock Systems," Management Science, INFORMS, vol. 50(10), pages 1431-1448, October.
    11. Jian Yang, 2004. "Production Control in the Face of Storable Raw Material, Random Supply, and an Outside Market," Operations Research, INFORMS, vol. 52(2), pages 293-311, April.
    12. Saif Benjaafar & William L. Cooper & Joon-Seok Kim, 2005. "On the Benefits of Pooling in Production-Inventory Systems," Management Science, INFORMS, vol. 51(4), pages 548-565, April.
    13. José Niño-Mora, 2006. "Restless Bandit Marginal Productivity Indices, Diminishing Returns, and Optimal Control of Make-to-Order/Make-to-Stock M/G/1 Queues," Mathematics of Operations Research, INFORMS, vol. 31(1), pages 50-84, February.
    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. Arreola-Risa, Antonio & Giménez-García, Víctor M. & Martínez-Parra, José Luis, 2011. "Optimizing stochastic production-inventory systems: A heuristic based on simulation and regression analysis," European Journal of Operational Research, Elsevier, vol. 213(1), pages 107-118, August.
    16. Saif Benjaafar & Yanzhi Li & Dongsheng Xu & Samir Elhedhli, 2008. "Demand Allocation in Systems with Multiple Inventory Locations and Multiple Demand Sources," Manufacturing & Service Operations Management, INFORMS, vol. 10(1), pages 43-60, October.
    17. Hossein Abouee-Mehrizi & Opher Baron & Oded Berman, 2014. "Exact Analysis of Capacitated Two-Echelon Inventory Systems with Priorities," Manufacturing & Service Operations Management, INFORMS, vol. 16(4), pages 561-577, October.
    18. Albert Y. Ha, 2000. "Stock Rationing in an M/E k /1 Make-to-Stock Queue," Management Science, INFORMS, vol. 46(1), pages 77-87, January.
    19. Fernando Bernstein & Francis de Véricourt, 2008. "Competition for Procurement Contracts with Service Guarantees," Operations Research, INFORMS, vol. 56(3), pages 562-575, June.
    20. Stephanie Carew & Mahesh Nagarajan & Steven Shechter & Jugpal Arneja & Erik Skarsgard, 2021. "Dynamic Capacity Allocation for Elective Surgeries: Reducing Urgency-Weighted Wait Times," Manufacturing & Service Operations Management, INFORMS, vol. 23(2), pages 407-424, 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:inm:oropre:v:48:y:2000:i:5:p:811-819. 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: Chris Asher (email available below). General contact details of provider: https://edirc.repec.org/data/inforea.html .

    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.