Abstract
This paper investigates a multi-product multi-machine production-inventory system, characterized by job shop routings and stochastic demand interarrival times, set-up times and processing times. The inventory points and the production system are controlled integrally by a centralized decision maker. We present a heuristic that minimizes the relevant costs by making near-optimal production and inventory control decisions while target customer service levels are satisfied. The heuristic is tested in an extensive simulation study and the results are discussed.
Keywords
The authorswould like to thank two anonymous referees and the editor for many valuable suggestions.
This is a preview of subscription content, log in via an institution.
Buying options
Tax calculation will be finalised at checkout
Purchases are for personal use only
Learn about institutional subscriptionsPreview
Unable to display preview. Download preview PDF.
References
Adams J, Balas E, Zawack D (1988) The shifting bottleneck procedure for job-shop scheduling. Management Science 34: 391–401
Altiok T, Shiue GA (2000) Pull-type manufacturing systems with multiple product types. IIE Transactions 32: 115–124
Amin M, Altiok T (1997) Control policies for multi-product multi-stage manufacturing systems: an experimental approach. International Journal of Production Research 35: 201–223
Benjaafar S, Kim JS, Vishwanadham N (2004) On the effect of product variety in production-inventory systems. Annals of Operations Research 126: 71–101
Benjaafar S, Cooper WL, Kim JS (2003) On the benefits of pooling in production-inventory systems.Working paper, University of Minnesota, Minneapolis. Management Science (to appear)
Birtwistle GM, Dahl OJ, Nijgaard K (1984) Simula begin. Studentenlitteratur, Lund
Bowman RA, Muckstadt JA(1995) Production control of cyclic schedules with demand and process variability. Production and Operations Management 4: 145–162
Cox DR (1962) Renewal theory. Methuen, London
Eglese RW (1990) Simulated annealing: a tool for operational research. European Journal of Operational Research 46: 271–281
Gudum CK, de Kok AG (2002) A safety stock adjustment procedure to enable target service levels in simulation of generic inventory systems. Working paper, BETA Research School, The Netherlands
Hillier FS, Lieberman GJ (2005) Introduction to Operations Research, 8th edn. McGraw-Hill, Boston
Hopp WJ, Spearman ML (1996) Factory physics. Irwin, Chicago
Karmarkar US (1987) Lot sizes, lead times and in-process inventories. Management Science 33: 409–419
Kingman JFC (1961) The single server queue in heavy traffic. Proceedings of the Cambridge Philosophical Society 57: 902–904
Lambrecht MR, Vandaele NJ (1996) A general approximation for the single product lot sizing model with queueing delays. European Journal of Operational Research 95: 73–88
Lambrecht MR, Ivens PL, Vandaele NJ (1998) ACLIPS: A capacity and lead time integrated procedure for scheduling. Management Science 44: 1548–1561
Law AM, Kelton WD (2000) Simulation modeling and analysis, 3rd edn. McGraw-Hill, Boston
Liberopoulos G, Dallery Y (2003) Comparative modelling of multi-stage production-inventory control policies with lot sizing. International Journal of Production Research 41: 1273–1298
Ouenniche J, Boctor F (1998) Sequencing, lot sizing and scheduling of several products in job shops: the common cycle approach. International Journal of Production Research 36: 1125–1140
Ouenniche J, Bertrand JWM (2001) The finite horizon economic lot sizing problem in job shops: the multiple cycle approach. International Journal of Production Economics 74: 49–61
Pinedo M, Chao X (1999) Operations scheduling with applications in manufacturing and services. McGraw-Hill, London
Rubio R, Wein LM (1996) Setting base stock levels using product-form queueing networks. Management Science 42: 259–268
Shantikumar JG, Buzacott JA (1981) Open queueing network models of dynamic job shops. International Journal of Production Research 19: 255–266
Silver EA, Pyke DF, Peterson R (1998) Inventory management and production planning and scheduling. Wiley, New York
Sox CR, Jackson PL, Bowman A, Muckstadt JA (1999) A review of the stochastic lot scheduling problem. International Journal of Production Economics 62: 181–200
Suri R, Sanders JL, Kamath M (1993) Performance evaluation of production networks. In: Graves SC et al (eds) Handbooks in Operations Research and Management Science, vol 4, pp 199–286. Elsevier, Amsterdam
Vandaele NJ (1996) The impact of lot sizing on queueing delays: multi product, multi machine models. Ph.D. thesis, Department of Applied Economics, Katholieke Universiteit Leuven, Belgium
Vandaele NJ, Lambrecht MR, De Schuyter N, Cremmery R (2000) Spicer Off-Highway Products Division-Brugge improves its lead-time and scheduling performance. Interfaces 30: 83–95
Van Nyen PLM, Van Ooijen HPG, Bertrand JWM (2004) Simulation results on the performance of Albin and Whitt’s estimation method for waiting times in integrated production-inventory systems. International Journal of Production Economics 90: 237–249
Van Nyen PLM, Bertrand JWM, Van Ooijen HPG, Vandaele NJ (2004) The control of an integrated multi-product multi-machine production-inventory system. Working paper, BETA Research School, The Netherlands
Van Nyen PLM (2005) The integrated control of production inventory systems. Ph.D. thesis, Department of Technology Management, Technische Universiteit Eindhoven, The Netherlands (to appear)
Whitt W (1983) The queueing network analyzer. Bell System Technical Journal 62: 2779–2815
Whitt W (1994) Towards better multi-class parametric-decomposition approximations for open queueing networks. Annals of Operations Research 48: 221–224
Zipkin P (1986) Models for design and control of stochastic multi-item batch production systems. Operations Research 34: 91–104
Author information
Authors and Affiliations
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2006 Springer-Verlag Berlin Heidelberg
About this chapter
Cite this chapter
Van Nyen, P., Bertrand, J., Van Ooijen, H., Vandaele, N. (2006). A heuristic to control integrated multi-product multi-machine production-inventory systems with job shop routings and stochastic arrival, set-up and processing times. In: Liberopoulos, G., Papadopoulos, C.T., Tan, B., Smith, J.M., Gershwin, S.B. (eds) Stochastic Modeling of Manufacturing Systems. Springer, Berlin, Heidelberg. https://doi.org/10.1007/3-540-29057-5_11
Download citation
DOI: https://doi.org/10.1007/3-540-29057-5_11
Publisher Name: Springer, Berlin, Heidelberg
Print ISBN: 978-3-540-26579-5
Online ISBN: 978-3-540-29057-5
eBook Packages: Business and EconomicsBusiness and Management (R0)