© 2010

Production and Inventory Management with Substitutions


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

Table of contents

About this book


This book addresses production and inventory management problems where products can be replaced by specified substitutes. Depending on the considered application, substitutions can potentially improve the service level, reduce required safety stocks and total setup costs and times, utilize cost variations of input products, and reduce the amount of wastage. The main focus is the development of graphical modeling approaches for substitution options and of production planning models based on these approaches using mathematical programming. In addition to single-level dynamic lot-sizing models with substitutions, models for multi-level production systems with flexible bills-of-materials and recipes are devised. Also, a simulation-based optimization approach for a multi-location inventory system with substitutions is developed.


Flexible Bills-of-Materials Mathematical Programming Modeling Production Planning Substitutions algorithms optimization simulation

Authors and affiliations

  1. 1.Institut für BetriebswirtschaftslehreTU DarmstadtDarmstadtGermany

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