Joint production, inventory rationing, and order admission control of a stochastic manufacturing system with setups

Ioannidis, Stratos; Xanthopoulos, A. S.; Sarantis, Ioannis; Koulouriotis, Dimitrios E.

doi:10.1007/s12351-019-00465-5

Cited by 4 publications

(2 citation statements)

References 30 publications

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“…The cost of inventory represents all the costs that are linked to the storage of products for sale as well as the raw material that is stored and gradually fed into the production lines [61]. The cost of holding, replenishing, and replacing products in the inventory depends on the type of product/material and the decay time, size, and value.…”

Section: E Inventory and Costmentioning

confidence: 99%

Cost-Based Decision Support System: A Dynamic Cost Estimation of Key Performance Indicators in Manufacturing

Psarommatis

Danishvar

Mousavi

et al. 2024

IEEE Trans. Eng. Manage.

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An attempt is made to translate five generic key performance indicators (KPIs) into a continuous real-time cost function in a batch order-based manufacturing environment. The challenge of controlling and optimizing resource utilization, production efficiency, product-process quality, environmental impact, and inventory was specified by microelectronics and hard metal composite manufacturers. The motivation is to facilitate decisionmaking by converting operations management data into dynamic financial cost models. The process of interpreting engineering data of the physical level and operations management level into financial metrics creates a common language between engineers, managers, and financial departments of the company whose common objective is the profitability of the company, each with their own priorities. The proposed method provides a realistic representation of the performance of the system in monetary value. The integration may become an instrument of effective and efficient tactical and strategic collective decision-making. The main outcome is a near real-time formulation and prediction of manufacturing cost with respect to the five KPIs. The resultant cost function is verified according to several production scenarios. The case study demonstrating the proposed cost modeling methodology utilizes real-time and historical information from two different industrial partners in Tungsten metallurgy and electronic circuit manufacturing industries.

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Section: E Inventory and Costmentioning

confidence: 99%

Cost-Based Decision Support System: A Dynamic Cost Estimation of Key Performance Indicators in Manufacturing

Psarommatis

Danishvar

Mousavi

et al. 2024

IEEE Trans. Eng. Manage.

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show abstract

“…( 2009 ); the backorders with two demand classes by Ioannidis et al. ( 2021 ); the capacity allocation by Shen and Yu ( 2019 ); omni-channel retailing by Goedhart et al. ( 2022 ); the batch ordering by Huang and Iravani ( 2008 ), the batch production by Pang et al.…”

Section: Literature Reviewmentioning

confidence: 99%

A complete algebraic solution to the optimal dynamic rationing policy in the stock-rationing queue with two demand classes

et al. 2023

J Comb Optim

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In this paper, we study a stock-rationing queue with two demand classes by means of the sensitivity-based optimization, and develop a complete algebraic solution to the optimal dynamic rationing policy. We show that the optimal dynamic rationing policy must be of transformational threshold type. Based on this finding, we can refine three sufficient conditions under each of which the optimal dynamic rationing policy is of threshold type (i.e., critical rationing level). To do this, we use the performance difference equation to characterize the monotonicity and optimality of the long-run average profit of this system, and thus establish some new structural properties of the optimal dynamic rationing policy by observing any given reference policy. Finally, we use numerical experiments to demonstrate our theoretical results of the optimal dynamic rationing policy. We believe that the methodology and results developed in this paper can shed light on the study of stock-rationing queue and open a series of potentially promising research.

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Economic production quantity with inventory rationing for a decaying item

Castellano

Glock

2022

IFAC-PapersOnLine

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Joint production, inventory rationing, and order admission control of a stochastic manufacturing system with setups

Cited by 4 publications

References 30 publications

Cost-Based Decision Support System: A Dynamic Cost Estimation of Key Performance Indicators in Manufacturing

Cost-Based Decision Support System: A Dynamic Cost Estimation of Key Performance Indicators in Manufacturing

A complete algebraic solution to the optimal dynamic rationing policy in the stock-rationing queue with two demand classes

Economic production quantity with inventory rationing for a decaying item

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