TY - JOUR
T1 - Multistage production systems with random yields and rigid demand
AU - Ben-Zvi, Tal
AU - Grosfeld-Nir, Abraham
PY - 2010/5
Y1 - 2010/5
N2 - The increased complexity of contemporary manufacturing makes it hard to maintain a predictable level of output. We consider several types of multistage systems in an environment where yield is random, production is in lots and demand needs to be satisfied in its entirety. For each possible configuration of intermediate inventories a production policy must specify the stage at which to produce next and the lot size to be processed. The objective is to minimise the expected total of setup and variable production costs. We show that the expected cost associated with any arbitrary production policy can be calculated by solving a finite set of linear equations. The result is general in that it applies to any yield structure. We also develop efficient heuristics to solve various multistage systems. Selected numerical results are presented for binomial yields.
AB - The increased complexity of contemporary manufacturing makes it hard to maintain a predictable level of output. We consider several types of multistage systems in an environment where yield is random, production is in lots and demand needs to be satisfied in its entirety. For each possible configuration of intermediate inventories a production policy must specify the stage at which to produce next and the lot size to be processed. The objective is to minimise the expected total of setup and variable production costs. We show that the expected cost associated with any arbitrary production policy can be calculated by solving a finite set of linear equations. The result is general in that it applies to any yield structure. We also develop efficient heuristics to solve various multistage systems. Selected numerical results are presented for binomial yields.
KW - Multiple lot sizing
KW - Multistage production system
KW - Random yield
KW - Rigid demand
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M3 - Article
AN - SCOPUS:77953834103
SN - 1368-2148
VL - 20
SP - 286
EP - 299
JO - International Journal of Manufacturing Technology and Management
JF - International Journal of Manufacturing Technology and Management
IS - 1-4
ER -