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Supply Chain Production Planning Modeling Facility Lead Time and Quality of Service

In: Analysis, Control and Optimization of Complex Dynamic Systems

Author

Listed:
  • Osman M. Anli
  • Michael C. Caramanis
  • Ioannis Ch. Paschalidis

Abstract

We propose a decision support framework for the Supply Chain management of a manufacturing enterprise. It utilizes structured inforiation sharing between a fluid approximation Master-Problem and facility specific Sub-Problems. We optimize weekly production schedules that minimize inventory and backlog costs subject to non-linear constraints on production imposed by weekly varying dynamic lead-times and inter-facility quality of service driven inventory hedging policies. Computational experience demonstrates that it is possible to achieve the same quality of service with significantly lower inventory and system times relative to static lead-time state of the art industry practice.

Suggested Citation

  • Osman M. Anli & Michael C. Caramanis & Ioannis Ch. Paschalidis, 2005. "Supply Chain Production Planning Modeling Facility Lead Time and Quality of Service," Springer Books, in: El Kébir Boukas & Roland P. Malhamé (ed.), Analysis, Control and Optimization of Complex Dynamic Systems, chapter 0, pages 91-133, Springer.
    • Handle: RePEc:spr:sprchp:978-0-387-25477-7_5
    DOI: 10.1007/0-387-25477-3_5
    as

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