A queuing approach for making decisions about order penetration point in multiechelon supply chains

Teimoury, Ebrahim; Modarres, Mohammad; Khondabi, Iman Ghaleh; Fathi, Mahdi

doi:10.1007/s00170-012-3913-x

Cited by 23 publications

(10 citation statements)

References 22 publications

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“…The customers who are in the queue may get impatient and run out of the line without being served (which is known as reneging in Queuing Theory). This waiting time follows an exponential distribution with mean 1 β (Teimoury et al, 2012). Due to the independence of customers' decision and principals of exponential distribution, it is concluded that the average renege rate in the current system is nβ (where n is the number of customers in the system).…”

Section: Problem Descriptionmentioning

confidence: 96%

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Production line performance analysis within a MTS/MTO manufacturing framework: a queueing theory approach

Ghalehkhondabi

Süer

2018

Prod.

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Paper aims: Mixing the Make-To-Stock (MTS) and Make-To-Order (MTO) strategies to benefit from the both manufacturing systems in an environment with impatient customers. Originality: This is the first research article which uses the queuing theory to find the best place of the Order Penetration Point (OPP) in a production line with impatient customers. Research method: Two scenarios are studied in this paper. 1-Semi-finished products are produced and stored in a buffer. No semi-finished product will be completed until a specific order comes to the system. This strategy leads to idle cost, but there is savings obtained in terms of eliminating investment in finished goods inventory and its holding cost. We can calculate the total cost of the system and find the optimal machine for the buffer of semi-finished products. 2-We use both MTS and MTO for completing the semi-finished products. When there is no customer in the system, semi-finished products are completed based on the MTS strategy and finished products are sent to a warehouse. But, when an order comes in for customization, a semi-finished product get assigned to that order and after finishing the current MTS job on each machine, this MTO job starts to complete the semi-finished product. To calculate system performance indexes, we use the Matrix Geometric Method (MGM) after modeling the systems with queuing theory concepts. Main findings: Numerical examples show the convexity of total cost in terms of product completion percentage and number of customization lines after the OPP. Also, increasing the production rate leads to higher expected number of semi-finished products in the buffer. Implications for theory and practice: Positioning OPP in manufacturing systems to compare different production strategies (MTS/MTO) has not been widely studied yet. This paper shows how manufacturing companies can apply the OPP to obtain benefits from both MTS and MTO strategies according to various cost parameters of the production lines. Using queuing theory concepts to model the problem under study helps to consider the external factors such as impatient customers and demand arrival uncertainty that can affect the performance measures of the system besides the internal factors such as production rate and inventory related costs. The idea of expanding the production line after a specific station and have more customization lines to improve customer satisfaction is studied in this paper as well.

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Section: Problem Descriptionmentioning

confidence: 96%

“…Queuing theory concepts are applied to find the OPP in a study by Teimoury et al (2012). They considered a multiproduct MTS/MTO manufacturing system which has probabilistic distribution for both customer arrival and manufacturing semi-finished products.…”

Section: Reduce the Risk Of Obsolescence Of Inventoriesmentioning

confidence: 99%

Production line performance analysis within a MTS/MTO manufacturing framework: a queueing theory approach

Ghalehkhondabi

Süer

2018

Prod.

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“…According to each category, the reviewed papers were classified as shown in table 1. [13] x [16] x [19] x [20] x [21] x [22] x [23] x [24] x [25] x [26] x [27] x [28] x [29] x [30] x [31] x [32] x [33] x [34] x [35] x [36] x [37] [38] x [39] x [40] x [41] x x [42] x x [43] x [44] x x [45] x [46] x [47] x [48] x [49] x [50] x…”

Section: Literature Reviewmentioning

confidence: 99%

“…Other contributions Karrer et al [41], Teimoury et al [42] have applied queuing network models by incorporating a probabilistic demand function. Like the optimization models [30], [35], MG [43], [44] and MM [16], [52], these implies mathematic arranges to achieve optimal solutions. However, in complex real situations these kind of models have to apply heuristics and meta-heuristics solutions to face the computational complexity.…”

Section: Literature Reviewmentioning

confidence: 99%

Metodología multicriterio para la ubicación del punto de desacople en sistemas de manufactura

Arango

Sarache

2017

inde

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Synchronization between production scheduling and real demand is an issue of great concern for production practitioners and academics. Put in a nutshell, the solution requires the placement of a decoupling point in order to get a trade-off between efficiency and flexibility. In the context of a postponement production strategy, a decoupling point is an inventory buffer to create independence between the process and final demand. Upstream of the decoupling point, the process is managed under a make-to-stock approach; in contrast, downstream operations meet the final demand under a make-to-order approach. In this sense, the present paper proposes a multicriteria methodology to locate decoupling points in manufacturing systems. The methodology consists of two stages, with two and three steps respectively. In the first stage, the decision criteria and alternative for decoupling points are chosen. In the second one, the final decoupling point placement is determined. By applying the methodology in a metalworking company, the location of the decoupling points for nine production lines was obtained.Palabras clave: decoupling point, manufacturing system, methodology, multicriteria, postponement. ISSN: 0122-3461 (impreso) 2145-9371 (on line)

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“…Zhao and Lian (2011) considered a queuinginventory system with two classes of customers with Poisson arrival and exponential service rate. Teimoury et al (2012) studied decision making on Order Penetration Point strategy with a queuing concept. Order Penetration Point is boundary between Make-to-order and Make-tostock.…”

Section: Introductionmentioning

confidence: 99%

Multi-Objective Soft Computing-Based Approaches to Optimize Inventory-Queuing-Pricing Problem under Fuzzy Considerations

Alinezhad¹,

Mahmoudi²,

Hajipour³

2016

Industrial Engineering and Management Systems

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Due to uncertain environment, various parameters such as price, queuing length, warranty, and so on influence on inventory models. In this paper, an inventory-queuing-pricing problem with continuous review inventory control policy and batch arrival queuing approach, is presented. To best of our knowledge, (I) demand function is stochastic and price dependent; (II) due to the uncertainty in real-world situations, a fuzzy programming approach is applied. Therefore, the presented model with goal of maximizing total profit of system analyzes the price and order quantity decision variables. Since the proposed model belongs to NP-hard problems, Pareto-based approaches based on non-dominated ranking and sorting genetic algorithm are proposed and justified to solve the model. Several numerical illustrations are generated to demonstrate the model validity and algorithms performance. The results showed the applicability and robustness of the proposed soft-computing-based approaches to analyze the problem.

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A queuing approach for making decisions about order penetration point in multiechelon supply chains

Cited by 23 publications

References 22 publications

Production line performance analysis within a MTS/MTO manufacturing framework: a queueing theory approach

Production line performance analysis within a MTS/MTO manufacturing framework: a queueing theory approach

Metodología multicriterio para la ubicación del punto de desacople en sistemas de manufactura

Multi-Objective Soft Computing-Based Approaches to Optimize Inventory-Queuing-Pricing Problem under Fuzzy Considerations

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