Capacitated, finish-to-order production planning with customer ordering day assignments.: An article from: IIE Transactions
Book Details
Author(s)Gregory Dobson, Euthemia Starulaki
ISBN / ASINB0008DC9O4
ISBN-13978B0008DC9O9
AvailabilityAvailable for download now
MarketplaceUnited States 🇺🇸
Description
This digital document is an article from IIE Transactions, published by Institute of Industrial Engineers, Inc. (IIE) on May 1, 2003. The length of the article is 8768 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available in your Amazon.com Digital Locker immediately after purchase. You can view it with any web browser.
From the author: We examine the production and ordering fulfillment system of a firm offering a large variety of products to time-sensitive customers. The firm wants to combine a finish-to-order strategy with an existing customer ordering system. The finish-to-order policy guarantees significant inventory savings due to the large number of end-product offerings, but it may also increase setup costs due to a short delivery commitment. The ordering system assigns periodic ordering dates to customers, encourages them to place their orders only on these dates, and promises them the same short delivery time irrespective of their geographic locations. The ordering system facilitates a smooth capacity load as well as transportation economies by allowing shipments to each location once during each ordering cycle. We propose a formulation for the combinatorial problem of choosing an ordering-day assignment and a finish-to-order production schedule that minimizes setup costs and maintains a balanced capacity load. We examine a Lagrangi an relaxation of this formulation and heuristic solutions based on our relaxation. Our numerical work demonstrates that our best heuristic differs from the optimal solution by 5% on average for small problems (with up to 10 products and 10 customers). Moreover, we show that the difference between the objective value of the relaxation and that of the best heuristic decreases significantly as the problem size increases, being as low as 4% on average for problems with 30 products and 30 customers.
Citation Details
Title: Capacitated, finish-to-order production planning with customer ordering day assignments.
Author: Gregory Dobson
Publication:IIE Transactions (Refereed)
Date: May 1, 2003
Publisher: Institute of Industrial Engineers, Inc. (IIE)
Volume: 35 Issue: 5 Page: 445(11)
Distributed by Thomson Gale
From the author: We examine the production and ordering fulfillment system of a firm offering a large variety of products to time-sensitive customers. The firm wants to combine a finish-to-order strategy with an existing customer ordering system. The finish-to-order policy guarantees significant inventory savings due to the large number of end-product offerings, but it may also increase setup costs due to a short delivery commitment. The ordering system assigns periodic ordering dates to customers, encourages them to place their orders only on these dates, and promises them the same short delivery time irrespective of their geographic locations. The ordering system facilitates a smooth capacity load as well as transportation economies by allowing shipments to each location once during each ordering cycle. We propose a formulation for the combinatorial problem of choosing an ordering-day assignment and a finish-to-order production schedule that minimizes setup costs and maintains a balanced capacity load. We examine a Lagrangi an relaxation of this formulation and heuristic solutions based on our relaxation. Our numerical work demonstrates that our best heuristic differs from the optimal solution by 5% on average for small problems (with up to 10 products and 10 customers). Moreover, we show that the difference between the objective value of the relaxation and that of the best heuristic decreases significantly as the problem size increases, being as low as 4% on average for problems with 30 products and 30 customers.
Citation Details
Title: Capacitated, finish-to-order production planning with customer ordering day assignments.
Author: Gregory Dobson
Publication:IIE Transactions (Refereed)
Date: May 1, 2003
Publisher: Institute of Industrial Engineers, Inc. (IIE)
Volume: 35 Issue: 5 Page: 445(11)
Distributed by Thomson Gale
