Quoting customer lead times

Article Abstract:

The problem of quoting customer lead times in a manufacturing system is considered under three different modelling assumptions. Under the first assumption, manufacturing capacity is infinite, therefore optimal quotes are independent of existing backlog. Under the second assumption, capacity is limited and the manufacturing system is a single server queue. Under the third assumption, the manufacturing company has unlimited capacity and has total freedom to determine the sequencing of the jobs to be processed. The study aims to develop a modeling framework in which the problem of quoting due dates in a manufacturing environment can be examined. In addition, it seeks to promote a better understanding of how the manufacturing plant's status can be incorporated into the dynamically quoted lead times.

Lead time

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Heuristic scheduling of parallel heterogeneous queues with set-ups

Article Abstract:

A study on heuristic scheduling of parallel heterogeneous queues with set-ups is presented. The problem involves the allocation of a single server to a system of queues with Poisson arrivals. Each queue represents a class of jobs and has a holding cost rate, general service distribution and general set-up time distribution. The goal is to minimize the expected holding cost brought about by the waiting of jobs. A set-up time is needed to switch from one queue to another. A limited characterization of the optimal policy and a simple heuristic scheduling policy are also provided. The results of the simulation indicate the effectiveness of the proposed heuristic over a wide range of problem instances. Further studies are recommended to develop a more complete characterization of the optimal policy.

Inventory control

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Production quotas as bounds on interplant JIT contracts

Article Abstract:

Manufacturing plants whose customer plants demand just-in-time (JIT) deliveries usually negotiate bounds on JIT contracts with these customers in consideration of the the randomness in both the production and demand processes. One way of establishing such bounds is by setting 'quotas' or 'target inventory levels.' Two models are presented that consider the problem of establishing the ideal quota from the point of view of supplier plant. Specifically, the models seek to determine the best structure for the negotiated bounds on the JIT contracts and to offer quantitative input to the negotiation process. The models indicate that a quota or a guaranteed inventory level can serve as the basis for bounding the responsibility of the manufacturer for satisfying variable demands.

Production management, Industrial suppliers, Production control, Just in time inventory systems, Just in time systems, Supply and demand

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