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Decomposed versus integrated control of a one-stage production system

  • Broersma, A.L.A.
  • Sierksma, G.
  • Wijngaard, J.

    (Groningen University)

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    This paper considers the case of a one-stage production system with several products and operating under tight production capacity constraints. The production schedule is cyclical, and there are long and sequence dependent setup times. The production system is regarded to consist of two components, namely a production unit and an inventory unit. The performance, with respect to inventory costs, timing and production quantity determination, of two types of control of the production system are compared, namely so-called decomposed and integrated control. For the generation of production orders, decomposed control uses only information from the inventory unit, while integrated control combines the information from both units. The main conclusion, based on simulation experiments, is that the inventory costs are just slightly lower in case of integrated control. Integration outperforms decomposition with respect to timing and quantity determination. However, since the differences between both approaches are small, the less sophisticated approach of decomposition is preferable when choices between both types of control have to be made.

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    Paper provided by University of Groningen, Research Institute SOM (Systems, Organisations and Management) in its series Research Report with number 99A18.

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    Date of creation: 1999
    Date of revision:
    Handle: RePEc:dgr:rugsom:99a18
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    1. D. Sarkar & W. I. Zangwill, 1989. "Expected Waiting Time for Nonsymmetric Cyclic Queueing Systems---Exact Results and Applications," Management Science, INFORMS, vol. 35(12), pages 1463-1474, December.
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