Determining optimal reorder intervals in capacitated production-distribution systems

Article Abstract:

Previous management researchers have formulated a large scale, non-linear, integer programming model to solve the problem of determining intervals in complex production-distribution environments. This model and the conditions that characterize the solution are reviewed. Optimal partition of nodes in the network are shown to be invariant to an an arbitrary scaling of cost parameters. Two capacitated versions of the integer programming model are examined: single constrained work center model, and multiple constrained work centers. The invariance corollary is a simple, closed-form solution for single constraint problems. A Lagrange multiplier method which exploits the invariance corollary is developed to solved multiple constraint problems.

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Stock allocation in a two-echelon distribution system or 'what to do until your ship comes in'

Article Abstract:

The problem of stock allocation in a two-echelon distribution system for a consumable item is discussed. The focus is on a single order cycle of a warehouse. The warehouse serves N retailers, and only shipments from the warehouse to the retailers are allowed during the cycle. Both the exact cost model and a computationally tractable approximate cost model are developed for the case of identical retailers under a ship-up-to-S allocation policy. The benefits of centralizing at least part of the total system stock are empirically demonstrated.

Management, Distribution of goods, Distribution (Commerce), Inventories

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Batching to minimize flow times on parallel heterogeneous machines

Article Abstract:

An algorithm is developed for determining optimal scheduling in a single product, multiple machine work area. Flow times are affected by both processing batch sizes and the work allocation to machines. A closed-form solution is presented which can be used as a heuristic loading rule in certain environments. The work center's optimal flow time is solely dependent on the center's total processing rate.

Operations research

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