Skip to main content
SpringerLink
Log in

Literature Review

  • Chapter
  • First Online:
Production and Inventory Management with Substitutions

Part of the book series: Lecture Notes in Economics and Mathematical Systems ((LNE,volume 636))

  • 2329 Accesses

Abstract

This chapter reviews the literature on lot-sizing with substitution and related fields of research. In Sect. 4.1, we briefly review the literature on and highlight applications of assortment problems, which can be seen as a tactical/medium-term counterpart to dynamic lot-sizing problems with substitution. Sect. 4.2 describes three existing production planning models with substitution/flexible BOM. Related topics, amongst others stochastic inventory control with substitution and flexible bills-of-materials, are briefly discussed in Sect. 4.3.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Log in via an institution
eBook
USD 16.99
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 109.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

References

  • Aissaoui, N., Haouari, M., & Hassini, E. (2007). Supplier selection and order lot sizing modeling: A review. Computers & Operations Research, 34(12), 3516–3540.

    Article  Google Scholar 

  • Archibald, T. W. (2007). Modelling replenishment and transshipment decisions in periodic review multilocation inventory systems. Journal of the Operational Research Society, 58(7), 948–956.

    Article  Google Scholar 

  • Balakrishnan, A., & Geunes, J. (2000). Requirements planning with substitutions: Exploiting bill-of-materials flexibility in production planning. Manufacturing & Service Operations Management, 2(2), 166–185.

    Article  Google Scholar 

  • Ball, M. O., Chen, C.-Y., & Zhao, Z.-Y. (2003). Material compatibility constraints for make-to-order production planning. Operations Research Letters, 31(3), 420–428.

    Article  Google Scholar 

  • Bassok, Y., Anupindi, R., & Akella, R. (1999). Single-period multiproduct inventory models with substitution. Operations Research, 47(4), 632–642.

    Article  Google Scholar 

  • Begnaud, J., Miller, L., & Benjaafar, S. (2006). The multilevel lot sizing problem with flexible production sequences (Working paper). Minnesota: Industrial and Systems Engineering Department of Mechanical Engineering, University of Minnesota, MN.

    Google Scholar 

  • Birge, J. R., Drogosz, J., & Duenyas, I. (1998). Setting single-period optimal capacity levels and prices for substitutable products. International Journal of Flexible Manufacturing Systems, 10(4), 407–430.

    Article  Google Scholar 

  • Bitran, G. R., & Dasu, S. (1992). Ordering policies in an environment of stochastic yields and substitutable demands. Operations Research, 40(5), 999–1017.

    Article  Google Scholar 

  • Chen, C., Zhao, Z., & Ball, M. (2001). Quantity and due date quoting available to promise. Information Systems Frontiers, 3(4), 477–488.

    Article  Google Scholar 

  • Chen, J. (2003). Component allocation in multi-echelon assembly systems with linked substitutes. Computers & Industrial Engineering, 45(1), 43–60.

    Article  Google Scholar 

  • DeCroix, G., & Zipkin, P. (2005). Inventory management for an assembly system with product or component returns. Management Science, 51, 1250–1265.

    Article  Google Scholar 

  • Denton, B., & Gupta, D. (2004). Strategic inventory deployment in the steel industry. IIE Transactions, 36(11), 1083–1097.

    Article  Google Scholar 

  • Dickersbach, J. T. (2006). Supply chain management with APO: Structures, modelling approaches, and implementation of MySAP SCM 4.1 (2nd edn.). Berlin: Springer.

    Google Scholar 

  • Domschke, W., & Scholl, A. (2005). Grundlagen der Betriebswirtschaftslehre (3rd edn.). Berlin: Springer.

    Google Scholar 

  • Drezner, Z., Gurnani, H., & Pasternack, B. A. (1995). An EOQ model with substitutions between products. The Journal of the Operational Research Society, 46(7), 887–891.

    Google Scholar 

  • Duenyas, I. P., & Tsai, C. Y. P. (2000). Control of a manufacturing system with random product yield and downward substitutability. IIE Transactions, 32(9), 785–795.

    Google Scholar 

  • Erlenkotter, D. (1978). A dual-based procedure for uncapacitated facility location. Operations Research, 26(6), 992–1009.

    Article  Google Scholar 

  • Fleischmann, B., & Meyr, H. (2003). Customer orientation in Advanced Planning Systems. In H. Dyckhoff, R. Lackes, & J. Reese (Eds.), Supply chain management and reverse logistics (pp. 297–322). Berlin: Springer.

    Google Scholar 

  • Gallego, G., Katircioglu, K., & Ramachandran, B. (2006). Semiconductor inventory management with multiple grade parts and downgrading. Production Planning & Control, 17(7), 689–700.

    Article  Google Scholar 

  • Gallego, G., & Phillips, R. (2004). Revenue management of flexible products. Manufacturing & Service Operations Management, 6(4), 321–337.

    Article  Google Scholar 

  • Gerchak, Y., & Grosfeld-Nir, A. (1999). Lot-sizing for substitutable, production-to-order parts with random functionality yields. International Journal of Flexible Manufacturing Systems, 11(4), 371–377.

    Article  Google Scholar 

  • Geunes, J. (2003). Solving large-scale requirements planning problems with component substitution options. Computers & Industrial Engineering, 44(3), 475–491.

    Article  Google Scholar 

  • Gunasekaran, A., & Ngai, E. (2005). Build-to-order supply chain management: A literature review and framework for development. Journal of Operations Management, 23(5), 423–451.

    Article  Google Scholar 

  • Gurnani, H., & Drezner, Z. (2000). Deterministic hierarchical substitution inventory models. Journal of the Operational Research Society, 51(1), 129–133.

    Google Scholar 

  • Hale, W., Pyke, D. F. P., & Rudi, N. (2000). An assemble-to-order system with component substitution (Working paper). Hanover, NH / Rochester, NY: Amos Tuck School, Dartmouth College / The Simon School, University of Rochester.

    Google Scholar 

  • Hardung, B., & Kollert, T. (2005). Optimisation of the variant combination of control units considering the order history. In H.-D. Haasis, H. Kopfer, & J. Schönberger (Eds.), Operations research proceedings 2005. Berlin: Springer.

    Google Scholar 

  • Henrich, P., Land, M., & Gaalman, G. (2007). Semi-interchangeable machines: Implications for workload control. Production Planning & Control, 18(2), 91–104.

    Article  Google Scholar 

  • Hsu, A., & Bassok, Y. (1999). Random yield and random demand in a production system with downward substitution. Operations Research, 47(2), 277–290.

    Article  Google Scholar 

  • Hsu, V. N., Li, C. L., & Xiao, W. Q. (2005). Dynamic lot size problems with one-way product substitution. IIE Transactions, 37, 201–215.

    Article  Google Scholar 

  • Jones, P. C., Lowe, T. J., Muller, G., Xu, N., Ye, Y., & Zydiak, J. L. (1995). Specially structured uncapacitated facility location problems. Operations Research, 43(4), 661–669.

    Article  Google Scholar 

  • Karakul, M., & Chan, L. (2008). Analytical and managerial implications of integrating product substitutability in the joint pricing and procurement problem. European Journal of Operational Research, 190, 179–204.

    Article  Google Scholar 

  • Lang, J. C., & Domschke, W. (2008). Efficient reformulations for dynamic lot-sizing problems with product substitution. OR Spectrum. doi:10.1007/s00291-008-0148-1.

    Google Scholar 

  • Liu, J., & Lee, C. G. (2007). Evaluation of inventory policies with unidirectional substitutions. European Journal of Operational Research, 182, 145–163.

    Article  Google Scholar 

  • Minner, S., Silver, E. A., & Robb, D. J. (2003). An improved heuristic for deciding on emergency transshipments. European Journal of Operational Research, 148(2), 384–400.

    Article  Google Scholar 

  • Nahmias, S. (1982). Perishable inventory theory: A review. Operations Research, 30(4), 680–708.

    Article  Google Scholar 

  • Ozturan, C. (2004). Network flow models for electronic barter exchanges. Journal of Organizational Computing and Electronic Commerce, 14(3), 175–194.

    Article  Google Scholar 

  • Pentico, D. W. (1988). The discrete two-dimensional assortment problem. Operations Research, 36(2), 324–332.

    Article  Google Scholar 

  • Pentico, D. W. (2008). The assortment problem: A survey. European Journal of Operational Research, 190(2), 295–309.

    Article  Google Scholar 

  • Poltroniere, S., Poldi, K., Toledo, F., & Arenales, M. (2008). A coupling cutting stock-lot sizing problem in the paper industry. Annals of Operations Research, 157(1), 91–104.

    Article  Google Scholar 

  • Quante, R., Meyr, H., & Fleischmann, M. (2009). Revenue management and demand fulfillment: Matching applications, models, and software. OR Spectrum, 31(1), 31–62.

    Article  Google Scholar 

  • Ram, B., Naghshineh-Pour, M., & Yu, X. (2006). Material requirements planning with flexible bills-of-material. International Journal of Production Research, 44(2), 399–415.

    Article  Google Scholar 

  • Rao, U. N., Swaminathan, J. N., & Zhang, J. (2004). Multi-product inventory planning with downward substitution, stochastic demand and setup costs. IIE Transactions, 36(1), 59–71.

    Article  Google Scholar 

  • Sadowski, W. (1959). A few remarks on the assortment problem. Management Science, 6(1), 13–24.

    Article  Google Scholar 

  • Shumsky, R. A., & Zhang, F. (2007). Dynamic capacity management with substitution (Working paper). Hanover, NH: Tuck School of Business, Dartmouth College.

    Google Scholar 

  • Varian, H. (2007). Intermediate microeconomics: A modern approach (7th edn.). New York: WW Norton.

    Google Scholar 

Download references

Author information

Authors and Affiliations

  1. Department of Law, Business and Economics Chair of Operations Research, Technische Universität Darmstadt, Hochschulstr. 1, 64289, Darmstadt, Germany

    Dr. J. Christian Lang

Authors
  1. Dr. J. Christian Lang
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to J. Christian Lang .

Rights and permissions

Reprints and permissions

Copyright information

© 2010 Springer-Verlag Berlin Heidelberg

About this chapter

Cite this chapter

Lang, J.C. (2010). Literature Review. In: Production and Inventory Management with Substitutions. Lecture Notes in Economics and Mathematical Systems, vol 636. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-04247-8_4

Download citation

Publish with us

Policies and ethics

Search

Navigation