Journal of Korean Institute of Industrial Engineers (대한산업공학회지)

Korean Institute of Industrial Engineers (대한산업공학회)
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Joint Batch Production and Inventory Rationing Control in a Two-Station Serial Production System

두 단계 일렬 생산 시스템에서 뱃치 생산과 재고 배급 전략의 통합 구현

  • Kim, Eun-Gab (College of Business Administration Ewha Womans University)
  • 김은갑 (이화여자대학교 경영대학)
  • Received : 2012.02.01
  • Accepted : 2011.04.10
  • Published : 2012.06.01
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Abstract

This paper considers a manufacturer with a two-station make-to-stock and make-to-order serial production system. The MTS facility produces a single type of component and provides components for the MTO facility that produces customized products. In addition to the internal demand from the MTO facility, the MTS facility faces demands from the spot market with the option of to accept or reject each incoming demand. This paper addresses a joint component inventory rationing and batch production control which maximizes the manufacturer's profit. Using the Markov decision process model, we investigate the structural properties of the optimal inventory rationing and batch production policy, and present two types of heuristics. We implement a numerical experiment to compare the performance of the optimal and heuristic policies and a simulation study to examine the impact of the stochastic process variability on the inventory rationing and batch production control.

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References

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