IDEAS home Printed from https://ideas.repec.org/p/cor/louvco/2013040.html

Pooling in manufacturing: do opposites attract?

Author

Listed:
  • MLINAR, Tanja B.

    (Université catholique de Louvain, Louvain School of Management and CORE, Belgium)

  • CHEVALIER, Philippe

    (Université catholique de Louvain, Louvain School of Management and CORE, Belgium)

Abstract

In a stochastic environment pooling naturally leads to economies of scale, but heterogeneity can also create variability. In this article, we investigate this trade-off in the case of a manufacturing environment. Pooling for queueing systems has been widely investigated while much less attention has been given to manufacturing systems where jobs are given a due date upon arrival. In such system it is not the elapsed time until the actual completion of the job that counts, but rather the lead time that can be promised to the customer in order to guarantee a high service level. In this paper, we study the benefits of pooling stochastic systems in such manufacturing setting with multiple customer types. Our results demonstrate that, in stark contrast with what was previously observed in service environments, heterogeneity is generally not deteriorating performance. Furthermore, our analytical and simulation studies reveal that the benefits of pooling in terms of the expected sojourn time can serve as a good prediction for the benefits of pooling on the average due-date lead time in a wide range of situations.

Suggested Citation

  • MLINAR, Tanja B. & CHEVALIER, Philippe, 2013. "Pooling in manufacturing: do opposites attract?," LIDAM Discussion Papers CORE 2013040, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    • Handle: RePEc:cor:louvco:2013040
    as

    Download full text from publisher

    File URL: https://sites.uclouvain.be/core/publications/coredp/coredp2013.html
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Fleurbaey,Marc & Maniquet,François, 2011. "A Theory of Fairness and Social Welfare," Cambridge Books, Cambridge University Press, number 9780521715348, January.
    2. So, Kut C. & Song, Jing-Sheng, 1998. "Price, delivery time guarantees and capacity selection," European Journal of Operational Research, Elsevier, vol. 111(1), pages 28-49, November.
    3. Lawrence M. Wein & Philippe B. Chevalier, 1992. "A Broader View of the Job-Shop Scheduling Problem," Management Science, INFORMS, vol. 38(7), pages 1018-1033, July.
    4. Gautier Axel & Poudou Jean-Christophe, 2014. "Reforming the Postal Universal Service," Review of Network Economics, De Gruyter, vol. 13(4), pages 453-477, December.
    5. Eylem Tekin & Wallace Hopp & Mark Van Oyen, 2009. "Pooling strategies for call center agent cross-training," IISE Transactions, Taylor & Francis Journals, vol. 41(6), pages 546-561.
    6. 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.
    7. Koulamas, Christos & Kyparisis, George J., 2008. "Single-machine scheduling with waiting-time-dependent due dates," European Journal of Operational Research, Elsevier, vol. 191(2), pages 577-581, December.
    8. CORNUEJOLS, Gérard & WOLSEY, Laurence & YILDIZ, Sercan, 2013. "Sufficiency of cut-generating functions," LIDAM Discussion Papers CORE 2013027, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    9. Förster, Manuel & Grabisch, Michel & Rusinowska, Agnieszka, 2013. "Anonymous social influence," Games and Economic Behavior, Elsevier, vol. 82(C), pages 621-635.
    10. Avishai Mandelbaum & Martin I. Reiman, 1998. "On Pooling in Queueing Networks," Management Science, INFORMS, vol. 44(7), pages 971-981, July.
    11. GOERTZ, Johanna & MANIQUET, François, 2013. "Large elections with multiple alternatives: a Condorcet Jury Theorem and inefficient equilibria," LIDAM Discussion Papers CORE 2013023, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    12. repec:hum:wpaper:sfb649dp2013-018 is not listed on IDEAS
    13. Lawrence M. Wein, 1991. "Due-Date Setting and Priority Sequencing in a Multiclass M/G/1 Queue," Management Science, INFORMS, vol. 37(7), pages 834-850, July.
    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. Hafner, Christian M. & Linton, Oliver, 2017. "An Almost Closed Form Estimator For The Egarch Model," Econometric Theory, Cambridge University Press, vol. 33(4), pages 1013-1038, August.
    16. WANG, Kent & WANG, Shin-Huei & PAN, Zheyao, 2013. "Can federal reserve policy deviation explain response patterns of financial markets over time?," LIDAM Discussion Papers CORE 2013029, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    17. Ananth V. Iyer & Apurva Jain, 2004. "Modeling the Impact of Merging Capacity in Production-Inventory Systems," Management Science, INFORMS, vol. 50(8), pages 1082-1094, August.
    18. Cheng, T. C. E. & Gupta, M. C., 1989. "Survey of scheduling research involving due date determination decisions," European Journal of Operational Research, Elsevier, vol. 38(2), pages 156-166, January.
    19. Vinod, V. & Sridharan, R., 2011. "Simulation modeling and analysis of due-date assignment methods and scheduling decision rules in a dynamic job shop production system," International Journal of Production Economics, Elsevier, vol. 129(1), pages 127-146, January.
    20. NESTEROV, Yurii, 2013. "Universal gradient methods for convex optimization problems," LIDAM Discussion Papers CORE 2013026, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    21. Hafner C. & Linton, O., 2013. "An Almost Closed Form Estimator for the EGARCH," LIDAM Discussion Papers ISBA 2013010, Université catholique de Louvain, Institute of Statistics, Biostatistics and Actuarial Sciences (ISBA).
    22. repec:hal:pseose:halshs-00913235 is not listed on IDEAS
    23. Bocart, Fabian Y.R.P. & Hafner, Christian M., 2015. "Fair Revaluation of Wine as an Investment," Journal of Wine Economics, Cambridge University Press, vol. 10(2), pages 190-203, November.
    24. Diwakar Gupta & Yigal Gerchak, 2002. "Quantifying Operational Synergies in a Merger/Acquisition," Management Science, INFORMS, vol. 48(4), pages 517-533, April.
    25. Gaertner,Wulf & Schokkaert,Erik, 2011. "Empirical Social Choice," Cambridge Books, Cambridge University Press, number 9781107013940, January.
    26. John A. Buzacott, 1996. "Commonalities in Reengineered Business Processes: Models and Issues," Management Science, INFORMS, vol. 42(5), pages 768-782, May.
    27. Sridharan, V. & Li, Xiaoming, 2008. "Improving delivery reliability by a new due-date setting rule," European Journal of Operational Research, Elsevier, vol. 186(3), pages 1201-1211, May.
    Full references (including those not matched with items on IDEAS)

    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. Tanja Mlinar & Philippe Chevalier, 2016. "Pooling heterogeneous products for manufacturing environments," 4OR, Springer, vol. 14(2), pages 173-200, June.
    2. CORNUEJOLS, Gérard & WOLSEY, Laurence & YILDIZ, Sercan, 2013. "Sufficiency of cut-generating functions," LIDAM Discussion Papers CORE 2013027, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    3. NESTEROV, Yurii, 2013. "Universal gradient methods for convex optimization problems," LIDAM Discussion Papers CORE 2013026, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    4. Bocart, Fabian Y.R.P. & Hafner, Christian M., 2015. "Fair Revaluation of Wine as an Investment," Journal of Wine Economics, Cambridge University Press, vol. 10(2), pages 190-203, November.
    5. Chiara Canta & Marie-Louise Leroux, 2016. "Public and Private Hospitals, Congestion, and Redistribution," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 18(1), pages 42-66, February.
    6. GOERTZ, Johanna & MANIQUET, François, 2013. "Large elections with multiple alternatives: a Condorcet Jury Theorem and inefficient equilibria," LIDAM Discussion Papers CORE 2013023, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    7. Çömez-Dolgan, Nagihan & Tanyeri, Başak, 2015. "Inventory performance with pooling: Evidence from mergers and acquisitions," International Journal of Production Economics, Elsevier, vol. 168(C), pages 331-339.
    8. Hafner, Christian M. & Linton, Oliver, 2017. "An Almost Closed Form Estimator For The Egarch Model," Econometric Theory, Cambridge University Press, vol. 33(4), pages 1013-1038, August.
    9. Nilay Tanık Argon & Sigrún Andradóttir, 2017. "Pooling in tandem queueing networks with non-collaborative servers," Queueing Systems: Theory and Applications, Springer, vol. 87(3), pages 345-377, December.
    10. Murat Erkoc & S. David Wu & Haresh Gurnani, 2008. "Delivery‐date and capacity management in a decentralized internal market," Naval Research Logistics (NRL), John Wiley & Sons, vol. 55(5), pages 390-405, August.
    11. Enns, S. T., 1998. "Lead time selection and the behaviour of work flow in job shops," European Journal of Operational Research, Elsevier, vol. 109(1), pages 122-136, August.
    12. Cristina Pardo-Garcia & Jose Sempere-Monerris, 2015. "Equilibrium mergers in a composite good industry with efficiencies," SERIEs: Journal of the Spanish Economic Association, Springer;Spanish Economic Association, vol. 6(1), pages 101-127, March.
    13. Erica L. Plambeck, 2004. "Optimal Leadtime Differentiation via Diffusion Approximations," Operations Research, INFORMS, vol. 52(2), pages 213-228, April.
    14. Slotnick, Susan A. & Sobel, Matthew J., 2005. "Manufacturing lead-time rules: Customer retention versus tardiness costs," European Journal of Operational Research, Elsevier, vol. 163(3), pages 825-856, June.
    15. Sigrún Andradóttir & Hayriye Ayhan & Douglas G. Down, 2001. "Server Assignment Policies for Maximizing the Steady-State Throughput of Finite Queueing Systems," Management Science, INFORMS, vol. 47(10), pages 1421-1439, October.
    16. Ward Whitt, 1999. "Partitioning Customers into Service Groups," Management Science, INFORMS, vol. 45(11), pages 1579-1592, November.
    17. Kim, Nayeon & Montreuil, Benoit & Klibi, Walid & Zied Babai, M., 2023. "Network inventory deployment for responsive fulfillment," International Journal of Production Economics, Elsevier, vol. 255(C).
    18. Mendolicchio Concetta & Paolini Dimitri & Pietra Tito, 2012. "Asymmetric Information And Overeducation," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 12(1), pages 1-29, October.
    19. Claude, DASPREMONT & Rodolphe, DOS SANTOS FERREIRA & Jacques, THEPOT, 2007. "Hawks and doves in segmented markets : a formal approach to competitive aggressiveness," Discussion Papers (ECON - Département des Sciences Economiques) 2007039, Université catholique de Louvain, Département des Sciences Economiques.
    20. S. Sivakumar & B. Mahadevan, 2024. "Design of Coproductive Systems: is Service Modularity Preferable over Resource Flexibility?," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 25(2), pages 223-241, June.

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    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:cor:louvco:2013040. 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: Alain GILLIS (email available below). General contact details of provider: https://edirc.repec.org/data/coreebe.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.