Decision model for product rollover in manufacturing operations

Katana, Toni; Eriksson, Andréas; Hilletofth, Per; Eriksson, David

doi:10.1080/09537287.2017.1367859

Cited by 14 publications

(4 citation statements)

References 58 publications

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“…Inventory destruction decision is a multi-functional managerial practice, often caused due to applying inaccurate forecast techniques [27], which is usually initiated by category managers in the e-commerce environments. Inventory destruction decisions are particularly important in industries such as e-commerce wherein there is a wide variety of products and bulky assortment sizes [28]; they are also relevant for managing inventories with short life cycles [29]. The destruction decisions should be based on the analysis of the tangible and intangible outcomes to ensure the best managerial course of action.…”

Section: Factors Influencing Inventory Destruction Decisions In E-commentioning

confidence: 99%

Destruction Decisions for Managing Excess Inventory in E-Commerce Logistics

Pourhejazy

2020

Sustainability

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The Internet has brought about new possibilities for innovation and radically changed business activities. Internet shopping is a prime example of increasing popularity, which is exacerbated due to the recent pandemic. It is expected that e-commerce will accommodate more than a quarter of the total retail sales worldwide in the next few years. Given the characteristics of e-commerce, inventory management is of paramount importance for an effective and timely response to the online customers’ demand. Despite its relevance, the issue of warehouse excess inventory is not sufficiently studied in the operations management literature. This study explores the factors, including sustainability and strategic considerations, that influence the inventory destruction decisions as one of the alternatives for managing excess inventory. Applying the Fuzzy Decision-Making Trial and Evaluation Laboratory (DEMATEL) method, the interrelationships between the decision factors are investigated and the decisive considerations are identified. Overall, the outcomes provide insights for the e-commerce practitioners and offer directions for modeling and managing inventory destruction decisions.

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Section: Factors Influencing Inventory Destruction Decisions In E-commentioning

confidence: 99%

Destruction Decisions for Managing Excess Inventory in E-Commerce Logistics

Pourhejazy

2020

Sustainability

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“…Manufacturing transition concerns a manufacturing facility transitioning to produce a new product family or product iteration that is significantly different to the existing product, with regards to manufacturing processes; these new processes require a ramp up phase to reduce disturbances and improve production efficiency. Product rollover is the replacement of an old product with a new product, the rollover decisions consider when to replace the product and whether to offer both old and new products simultaneously (Katana, Eriksson, Hilletofth, & Eriksson, 2017). A dual rollover, offering both products simultaneously, can include a transition phase when both products are manufactured simultaneously.…”

Section: Transitionmentioning

confidence: 99%

Anarchic manufacturing: Distributed control for product transition

Andrew

Frantzén

Snider

et al. 2020

Journal of Manufacturing Systems

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Manufacturers are poorly equipped to manage product transition scenarios, when moving from one product to another. Most tools consider a mature system, yet during transition and ramp up disturbances and inefficiency are common. The traditional methods, using centralised planning and control structures are too rigid and often resort to simple dispatch heuristics in this highly dynamic environment. Distributed systems have been proposed to leverage their self-organising and flexible traits to manage highly volatile and complex scenarios.Anarchic manufacturing, a free market based distributed planning and control system, delegates decision-making authority and autonomy to system elements at the lowest level; this system has previously been shown to manage job and flowshop style problems. The system has been adapted to use a dynamic batching mechanism, where jobs cooperate to benefit from economies of scale. The batch enables a direct economic viability assessment within the free market architecture, whether an individual machine should changeover production to another product type. This profitability assessment considers the overall system state and an agent's individual circumstance, which in turn reduces system myopia. Four experiments, including a real-world automotive case study, evaluate the anarchic manufacturing system against two centralised systems, using three different ramp-up curves. Although not always best performing against centralised systems, the anarchic manufacturing system is shown to manage transition scenarios effectively, displaying self-organising and flexible characteristics. The hierarchical system was shown to be impeded by its simplifying structure, as a result of structural rigidity.

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“…Product transitions, also referred to as product rollovers (Bilginer & Erhun, 2011; Katana et al, 2017), replace a set of products that are currently being produced and distributed by a firm with new products throughout its supply chain to improve market share by providing enhanced products at competitive prices. In high technology industries such as semiconductor manufacturing, effective management of product transitions is crucial to long‐term success (Hendricks & Singhal, 2008; Levinthal & Purohit, 1989; Padmanabhan et al, 1997).…”

Section: Introductionmentioning

confidence: 99%

Coordination of manufacturing and engineering activities during product transitions

Bansal

Özaltın

Uzsoy

et al. 2022

Naval Research Logistics

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Product transitions involve the replacement of products currently being produced and distributed by a firm with new products throughout the firm's supply chain. In high technology industries effective management of product transitions is crucial to long-term success, and involves the coordination of multiple product development units and a manufacturing unit by a product division serving a particular market. Since the different units are organizationally autonomous, and the product division does not have access to their detailed technological constraints and internal operating policies, a decentralized solution is required. We develop a price-based coordination framework using the subadditive dual of a mixed-integer linear program that seeks to maximize the number of units whose proposed plans are included in the final solution. The proposed approach yields superior solutions to a linear-programming-based branch-and-price approach within the same computing budget. We discuss the broader applicability of this integer column generation approach, and suggest directions for future work.

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Decision model for product rollover in manufacturing operations

Cited by 14 publications

References 58 publications

Destruction Decisions for Managing Excess Inventory in E-Commerce Logistics

Destruction Decisions for Managing Excess Inventory in E-Commerce Logistics

Anarchic manufacturing: Distributed control for product transition

Coordination of manufacturing and engineering activities during product transitions

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