Capacity and Inventory Planning for Make-to-Order Production Systems: The Impact of a Customer Required Lead Time Distribution

150 Pages·2014·1.675 MB·English

by  Klaus Altendorfer (auth.)

Lecture Notes in Economics and Mathematical Systems 671
Klaus Altendorfer
Capacity and
Inventory Planning
for Make-to-Order
Production Systems
The Impact of a Customer Required
Lead Time Distribution
Lecture Notes in Economics
and Mathematical Systems 671
FoundingEditors:
M.Beckmann
H.P.Ku¨nzi
ManagingEditors:
Prof.Dr.G.Fandel
FachbereichWirtschaftswissenschaften
Fernuniversita¨tHagen
Hagen,Germany
Prof.Dr.W.Trockel
MuratSertelInstituteforAdvancedEconomicResearch
IstanbulBilgiUniversity
Istanbul,Turkey
Institutfu¨rMathematischeWirtschaftsforschung(IMW)
Universita¨tBielefeld
Bielefeld,Germany
EditorialBoard:
H.Dawid,D.Dimitrov,A.Gerber,C-J.Haake,C.Hofmann,T.Pfeiffer,
R.Slowin´ski,W.H.M.Zijm
For furthervolumes:
http://www.springer.com/series/300
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Klaus Altendorfer
Capacity and Inventory
Planning for Make-to-Order
Production Systems
The Impact of a Customer Required Lead
Time Distribution
KlausAltendorfer
SchoolofManagement
UniversityofAppliedSciences
UpperAustria
Steyr,Austria
Published with the support of Austrian Science Fund (FWF)
ISSN0075-8442
ISBN978-3-319-00842-4 ISBN978-3-319-00843-1(eBook)
DOI10.1007/978-3-319-00843-1
SpringerChamHeidelbergNewYorkDordrechtLondon
LibraryofCongressControlNumber:2013944963
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Preface
Queuingmodelsforthedesignandanalysisofmanufacturingandservicesystems
have a long tradition in operations management. There exists a considerable
knowledge of stochastic models and methods. Nevertheless, there is still demand
forfurtherextensions,inparticularwhenitcomestocombininganoperationsview
withotherbusinessperspectiveslikeastrongercustomerfocus.
Thisbookcomprisesacollectionoffourresearchpaperstheauthorhasprepared
duringhis timeasaPh.D.studentinthe “Logistics andOperationsManagement”
program at the University of Vienna. The work’s innovation is the simultaneous
consideration of classical performance measures and decision variables of
manufacturing systems and the impact of customer-required lead times which
varyamongdifferentcustomers.
The contributions in detail analyze inventory, waiting time performance, and
service-level measures under distributed customer-required lead times, both for
single- and multistage manufacturing systems. The basic results are utilized to
simultaneously optimize strategic and tactical means of a manufacturing system,
i.e.,capacityontheonehandandwork-release rulesastacticalparameters onthe
otherhand.
Using simple queuing models, Klaus Altendorfer’s thesis aims at deriving
analytical expressions for performance measures and insights derived from those.
The obtained results will inspire future work on production control and
manufacturing systems design with a particular emphasis on customer
requirements.
Munich,March2013 StefanMinner
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Acknowledgments
The Ph.D. thesis, which is published with minor improvements in this book, was
greatly inspired by one ofProf. Jodlbauer’s papers. The thesis was written during
my time as a Research Assistant and later on as an Assistant Professor in his
departmentattheUpperAustriaUniversityofAppliedSciencesinSteyr.Iwould
liketothankProf.Jodlbauerforhissupportandfortheworkingconditionsenabling
the generation of a Ph.D. thesis in his department. Furthermore, I would like to
thank Prof. Hartl for the possibility to start my Ph.D. studies at the University of
Viennaandforhisfurthersupport.
IamespeciallythankfultomySupervisorProf.Minnerforhiscriticalcomments
onmymanuscripts,leadingtoaconsiderableimprovementoftheresultsandtheir
presentation.Thiscriticalreview hasenabledamuchdeeperunderstandingofthe
conceptsusedandwillguidemyfutureresearchworkaswell.
Lastly,IwouldliketothankmywifeGerdaforherongoingsupportduringall
thechallengesofmyPh.D.studies.Shewasalwaysanislandofrestandloveforme
andprovidedmethestrengthtogoonwheneverthepathseemedtoorocky.
Steyr,March2013 KlausAltendorfer
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Contents
1 Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
2 LiteratureReview. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
2.1 RelationshipsBetweenLogisticalKeyPerformanceIndicators. . . 6
2.1.1 InternalViewonProductionLogistics. . . . . . . . . . . . . . . 6
2.1.2 ExternalViewonProductionLogistics. . . . . . . . . . . . . . . 8
2.2 WorkReleaseRules. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
2.2.1 PlannedLeadTimeSetting. . . . . . . . . . . . . . . . . . . . . . . 12
2.2.2 AdvanceDemandInformation. . . . . . . . . . . . . . . . . . . . . 13
2.3 CapacityInvestment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
2.3.1 QueuingSystemDesign. . . . . . . . . . . . . . . . . . . . . . . . . . 15
2.3.2 BackorderCostorServiceLevelModels. . . . . . . . . . . . . 16
3 Single-StageServiceLevelandTardinessModel. . . . . . . . . . . . . . . 19
3.1 IntroductoryRemarks. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
3.2 ModelDevelopment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
3.2.1 ModelAssumptionsandNotation. . . . . . . . . . . . . . . . . . . 20
3.2.2 QueuingModelwithDeterministicCustomerRequired
LeadTime. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
3.2.3 DistributionofCustomerRequiredLeadTime. . . . . . . . . 23
3.2.4 IntegrationofaWAWWorkReleasePolicy. . . . . . . . . . . 25
3.2.5 ApplicationforG/G/1ProductionSystem. . . . . . . . . . . . . 28
3.3 NumericalStudy. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
3.3.1 RelationshipBetweenLogisticalKeyFigures. . . . . . . . . . 29
3.3.2 FGIReductionPotentialwithWAWPolicy. . . . . . . . . . . 31
3.4 ConcludingRemarks. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
4 SimultaneousCapacityandPlannedLeadTimeOptimization. . . . . 43
4.1 IntroductoryRemarks. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
4.2 TheGeneralOptimizationModel. . . . . . . . . . . . . . . . . . . . . . . . 44
4.2.1 AssumptionsandNotation. . . . . . . . . . . . . . . . . . . . . . . . 44
4.2.2 ModelAnalysis. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45
4.2.3 Multi-StageExtension. . . . . . . . . . . . . . . . . . . . . . . . . . . 48
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