On integrated production-replenishment policies in single-stage manufacturing

• Published in: Computers & operations research Vol. 26; no. 5; pp. 505 - 523
• Main Authors: Hong, Jae-Dong, Hayya, Jack C.
• Format: Journal Article
• Language: English
• Published: Oxford Elsevier Ltd 01.04.1999; Elsevier Science; Pergamon Press Inc
• Subjects: Applied sciences; Demand pattern; Exact sciences and technology; Inventory control, production control. Distribution; Material requirements planning; Operational research and scientific management; Operational research. Management science; Operations research; Optimization; Production controls; Production/inventory; Replenishment/production policy; Statistical analysis; Studies; Production/inventory; Demand pattern; Replenishment/production policy; Demand; Batch production; Production management; Inventory control; Replenishment; Algorithm
• ISSN: 0305-0548; 1873-765X; 0305-0548
• DOI: 10.1016/S0305-0548(98)00077-X

This paper simultaneously considers production policies under general time-dependent demand for the end item and replenishment policies for the input materials in single-stage manufacturing. The production policies considered are (i) the equal production batch size and (ii) the equal production cycle. The replenishment procedures are (i) the integer multiple lot and (ii) the integer split lot. We develop a general solution algorithm for simultaneously finding the optimal number of production runs for the end product and the optimal replenishment schedule for the input materials. We discuss the effects of the demand pattern on the production policies and the effects of the production policy on the replenishment procedures for the input materials. Scope and purposes In contrast to previous articles dealing with nonconstant independent demand for the end item, this paper integrates the dependencies between the end product and its input materials. In this environment, it is practical to adjust the optimum replenishment policy for the input materials to the production policy of the end product. Thus, the purpose of this paper is to develop a general solution procedure for simultaneously finding the optimal production schedule for the end product and the corresponding replenishment schedule for the input materials. The solution procedure can be easily used for various product demand patterns. The results and the solution procedure developed in this paper are generalizations of several others in the literature.