Operations Research in Production Planning and Control: Proceedings of a Joint German/US Conference, Hagen, Germany, June 25–26, 1992. Under the Auspices of Deutsche Gesellschaft für Operations Research (DGOR), Operations Research Society of America (ORSA

597 Pages·1993·18.297 MB·English

by  Charles V. Trappey, Amy J. C. Trappey, Richard Feinberg (auth.), Prof. Dr. Günter Fandel, Prof. Dr. Thomas Gulledge, Dr. Albert Jones (eds.)

Gunter Fandel· Thomas Gulledge
Albert Jones (Eds.)
Operations Research
in Production Planning
and Control
Proceedings of a Joint German/US Conference,
Hagen, Germany, June 25-26, 1992
Under the Auspices of
Deutsche Gesellschaft flir Operations Research (DGOR),
Operations Research Society of America (ORSA)
. With 152 Figures
Springer-Verlag
Berlin Heidelberg New York
London Paris Tokyo
Hong Kong Barcelona
Budapest
Prof. Dr. Gunter Fandel, Institute of Production Management
Femuniversitat Hagen, FeithstraBe 140/ AV Z II
D-5800 Hagen, FRG
Prof. Dr. Thomas Gulledge, The Institute of Public Policy
George Mason University, 4400 University Drive
Fairfax, Virginia 22030-444, USA
Dr. Albert Jones, AMFR, NIST B 124 Metrology,
Gaithersburg, Maryland 20899, USA
ISBN-13: 978-3-642-78065-3 e-ISBN-13: 978-3-642-78063-9
001: I 0.1 007/978-3-642-78063-9
This work is subject to copyright. All rights are reserved, whether the whole or part oft he material is
concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broad
casting, reproduction on microfilms or in other ways, and storage in data banks. Duplication of
this publication or parts thereof is only permitted under the provisions ofthe German Copyright
Law of September 9, 1965, in its version of June 24, 1985, and a copyright fee must always be paid.
Violations fall under the prosecution act of the German Copyright Law.
© Springer-Verlag Berlin· Heidelberg 1993
Softcover reprint of the hardcover I st edition 1993
The use ofr egistered names, trademarks, etc. in this publication does not imply, even in the absence
of a specific statement, that such names are exempt from the relevant protective laws and regulati
ons and therefore free for general use.
2142/7130-543210 -Printed on acid-free paper
Preface
This proceedings volume contains selected and refereed contributions that were presented at
the conference on "Recent Developments and New Perspectives of Operations Research in
the Area of Production Planning and Control" in Hagen/Germany, 25. -26. June 1992.
This conference was organized with the cooperation of the FernuniversiHit Hagen and was
jointly hosted by the "Deutsche Gesellschaft fur Operations Research (DGOR)" and the
"Manufacturing Special Interest Group of the Operations Research Society of America
(ORSA-SIGMA)". For the organization of the conference we received generous financial
support from the sponsors listed at the end of this volume. We wish to express our
appreciation to all supporters for their contributions.
This conference was the successor of the JOInt ORSA/DGOR-conference in
Gaithersburg/Maryland, USA, on the 30. and 31. July 1991. Both OR-societies committed
themselves in 1989 to host joint conferences on special topics of interest from the field of
operations research. This goal has been successfully realized in the area of production
management; and it should be an incentive to conduct similar joint conferences on other
topics of operations research in the years to come. The 36 contributions in this proceedings
volume deal with general and special problems in production planning as well as approaches
and algorithms for their solution. They cover a wide range of operations research within
product management and will therefore address a wide circle of interested readers among
OR-scientists and professionals alike.
Last, but not least, we would like to thank all who have shared efforts to make this conference
a success. In particular Lioba Lanwer, Peter Fran'$ois and Dr. Richard Lackes are recognized
for their help in organizing and conducting the conference. We thank also Prof. Dr. Wolfgang
Buhler and Prof. Dr. Lothar Streitferdt of the DGOR for initiating this joint venture of
DGOR and ORSA.
Gunter Fandel, General Chairperson, DGOR
Thomas Gulledge, Co-Program Chairperson, ORSA-SIGMA
AI Jones, Co-Program Chairperson, NIST
TABLE OF CONTENTS
I. General Planning and Modelling Approaches
Planning Product Assortment Using Portfolio Optimization 3
Charles V. Trappey, Amy J. C. Trappey and Richard Feinberg
Rapid Modeling: The Use of Queueing Models to Support 21
Time-Based Competitive Manufacturing
Rajan Suri and Suzanne de Treville
Process Network Theory and Implementation for 31
Technology Assessment in Manufacturing
R. Lal Tummala, Bruce E. Koenig and
Herman E. Koenig
Is Lean Production Really Lean? 49
The Design of a Lean Production System
Joachim Reese
The Performance of Kanban Controlled Serial 71
Production Systems
John A. Buzacott, Suzanne M. Price and
J. George Shanthikumar
Capacity Oriented Production Control for a 89
Job Shop Production
Karl-Werner Hansmann
On Solving a Large-Scale Resource Allocation Problem 105
in Production Planning
Christof Dillenberger, Laureano F. Escudero,
Artur Wollensak and Wu Zhang
Integrated Station Location and Flow Network Design 120
for Manufacturing Systems Layout
Dilip Chhajed. Timothy J. Lowe and Benoit Montreuil
Using Optimization Model to Control workpiece 138
Rigidity and Deformation in Workholding to Achieve
Precision Machining
Amy J. C. Trappey, Parag Gupta and C. Richard Liu
A New Approach to Determine the Pose and Dimension 151
of Polygonal Shapes
Jose A. Ventura and Jen-Ming Chen
VIII
II. Flexible Manufacturing Systems
Problems of Modelling and FMS Control Implementation 169
Janez Dekleva and Matjaz Gaberc
Formal Models for Control of Flexible Manufacturing 184
Systems
Sanjay Joshi, Jeffrey S. Smith and Richard A. Wysk
Candidate Rule Selection to Develop Intelligent 201
Scheduling Aids for Flexible Manufacturing Systems (FMS)
Yuehwern Yih and Albert T. Jones
Tool Blocking in Flexible Manufacturing Systems 218
Ulrich A. W. Tetzlaff
III. PPC and CIM
Architectural Framework for Integrated Production 235
Control Systems
August-Wilhelm Scheer
A New Conceptual Framework for Hierarchically 246
Integrated PPS-Systems
Christoph SchneeweiB
Issues in Specifying Planning Horizons for Production 270
Planning within elM Environments
S. D. Thompson, J. A. Jewell and Wayne J. Davis
IV. Scheduling
A Closed Loop Control Heuristic for Scheduling a 293
Manufacturing System Subject to Random Setup Times
Mitchell H. Burman and Stanley B. Gershwin
Resource- and Time Window-Constraint Production 307
Scheduling with Alternative Process Plans:
An Artificial Intelligence Approach
Andreas Drexl and Arno Sprecher
Robust Scheduling and Game-Theoretic Control for 321
Short-Term Scheduling of Job-Shops
Victor Jorge Leon, S. David Wu and Robert H. Storer
The Two-Stage Hybrid-Flowshop Scheduling Problem 336
with Sequence-Dependent Setup Times
Stefan VoB
IX
Shop-Floor Scheduling and Control: A Systems Approach 353
Richard A. Wysk, Richard J. Hayer, Hyuenbo Cho,
Sanjay Joshi, Jeffrey Smith, Walter Hoberecht,
C. Dennis Pegden and Albert L. Jones
Spatially-Oriented Production Planning and Scheduling 371
Uwe Petersen
V. Lot-Sizing and Inventory Control
Models for Integrated Inventory Control by EDI for 389
A Single Supplier and Multiple Buyers
Avijit Banerjee and Snehamay Banerjee
Optimal Inventory Policy in Assembly Systems with 405
Component Commonality
Srinivas Bollapragada and Ram Akella
Valuation of Leadtime Reduction in Multi-Stage 413
Production Systems
Karl Inderfurth
Nervousness and Reorder Policies in Rolling Horizon 428
Environments
Thomas Jensen
Some Valid Constraints for the Capacitated 444
Assembly Line Lotsizing Problem
Heinz D. Hathes
DLSP for Multi-Item Batch Production 459
Wolfgang Bruggemann and Hermann Jahnke
Information Production Functions in Dynamic Lot-Sizing 473
Gunter Fandel and Peter Fran90is
VI. Quality
How Much Quality Is Enough? 499
James R. Dorroh, Thomas R. Gulledge and
Norman K. Womer
Decision Methodology for Product Quality in Flow 511
Lines
Layek Abdel-Halek and Xiuli Chao
x
VII. Neural Networks and Genetic Algorithms
Multiple-Step-Ahead Prediction by Hierarchical 529
Neural Networks
Tep Sastri
Integrating Neural Nets, Simulation, and Genetic 550
Algorithms for Real-Time Scheduling
Albert Jones and Luis Rabelo
A Genetic Algorithm for Scheduling with Resource 567
Consumption
Timothy Starkweather, Darrell Whitley and Bud Cookson
Genetic Algorithms in Problem Space for Sequencing 584
Problems
Robert H. Storer, S. David Wu and InKyoung Park
List of Sponsors 598
I. General Planning and Modelling Approaches
Planning Product Assortment Using Portfolio Optimization
Charles V. Trappey
Department of Consumer Sciences and Retailing
Purdue University, W. Lafayette, In 47907, USA
Amy J. C. Trappey
Department of Industrial & Manufacturing Systems Engineering
Iowa State University, Ames, Ia 50011, USA
Richard Feinberg
Department of Consumer Sciences and Retailing
Purdue University, W. Lafayette, In 47907, USA
Abstract
The task of planning product assortments using portfolio optimization is developed and
applied to a case in apparel manufacturing and distribution. The planning process begins with the
retail buyer, the key individual in the organization that selects merchandise for resale to the
consumer. In order to maximize the profit and minimize the risk of the merchandise investment,
the retail buyer must simultaneously consider many different factors that impact the merchandise
mix decision. A merchandise planning model is developed for the retail buyer based on the
concept of stock portfolio theory. The investment returns and risks are considered to determine the
product assortment. A retrospective statistical test is conducted to verify the goodness of the
product assortment portfolio model. The methodology, developed for a large Midwest retailer, can
be extended to a wide variety of cases in manufacturing, especially cases involving the production
of consumer products.
Key Wonk Merchandise assortment planning, portfolio theory, product life cycle.
1. Introduction
This research introduces the use of investment portfolio theory to optimize two
merchandise investment planning decisions. The first decision is the merchandise item selection.
Given a set of n items available for investment, find m items to form a maximum profit, minimum
risk merchandise assortment (Figure 1). The selection criteria are based upon the buyer's purchase
objectives and evaluation of risk and returns. The second decision is the item percentage decision.