Table Of ContentPlanning Production and Inventories in the Extended
Enterprise
International Series in Operations Research
& Management Science
Volume 151
SeriesEditor
FrederickS.Hillier
StanfordUniversity,CA,USA
SpecialEditorialConsultant
CamilleC.Price
StephenF.AustinStateUniversity,TX,USA
Forothervolumes:
http://www.springer.com/series/6161
Karl G. Kempf Pinar Keskinocak Reha Uzsoy
(cid:2) (cid:2)
Editors
Planning Production
and Inventories in the
Extended Enterprise
A State of the Art Handbook, Volume 1
ABC
Editors
KarlG.Kempf PinarKeskinocak
IntelCorporation GeorgiaInstituteofTechnology
5000W.ChandlerBlvd. SchoolofIndustrial
MSCH3-10 &SystemsEngineering
Chandler,Arizona85226,USA FerstDriveNW.,765
[email protected] 30332-0205AtlantaGeorgia
USA
[email protected]
RehaUzsoy
EdwardP.FittsDepartment
ofIndustrialandSystemsEngineering
NorthCarolinaStateUniversity
Raleigh,NC27695-7906
USA
[email protected]
ISSN0884-8289
ISBN978-1-4419-6484-7 e-ISBN978-1-4419-6485-4
DOI10.1007/978-1-4419-6485-4
SpringerNewYorkDordrechtHeidelbergLondon
LibraryofCongressControlNumber:2010938800
(cid:3)c SpringerScience+BusinessMedia,LLC2011
Allrightsreserved.Thisworkmaynotbetranslatedorcopiedinwholeorinpartwithoutthewritten
permission of the publisher (Springer Science+Business Media, LLC, 233 Spring Street, New York,
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orbysimilarordissimilarmethodologynowknownorhereafterdevelopedisforbidden.
Theuseinthispublicationoftradenames,trademarks,servicemarks,andsimilarterms,eveniftheyare
notidentifiedassuch,isnottobetakenasanexpressionofopinionastowhetherornottheyaresubject
toproprietaryrights.
Printedonacid-freepaper
SpringerispartofSpringerScience+BusinessMedia(www.springer.com)
Contents
1 Preface......................................................................... 1
KarlG.Kempf,PinarKeskinocak,andRehaUzsoy
2 TheHistoricalFoundationsofManufacturingPlanning
andControlSystems ......................................................... 21
KennethN.McKay
3 AdvancedPlanningandSchedulingSystems:TheQuest
toLeverageERPforBetterPlanning ...................................... 33
IrfanM.Ovacik
4 TheTransitiontoSustainableProductDevelopmentand
Manufacturing................................................................ 45
RobertC.CarlsonandDariushRafinejad
5 UncertaintyandProductionPlanning ..................................... 83
StephenC.Graves
6 DemandForecastingProblemsinProductionPlanning .................103
JonathanR.M.Hosking
7 Production Capacity: Its Bases, Functions
andMeasurement.............................................................119
SalahE.Elmaghraby
8 DatainProductionandSupplyChainPlanning..........................167
LauraDionneandKarlG.Kempf
9 FinancialUncertaintyinSupplyChainModels...........................185
AlizaHechingandAlanKing
10 Field-BasedResearchonProductionControl.............................205
KennethN.McKay
v
vi Contents
11 CollaborativeSupplyChainManagement.................................233
FeryalErhunandPinarKeskinocak
12 Sequencing Strategies and Coordination Issues in
OutsourcingandSubcontractingOperations .............................269
TolgaAydinliyimandGeorgeL.Vairaktarakis
13 InventoryManagement:Information,Coordination,and
Rationality.....................................................................321
O¨zalpO¨zer
14 Pricing,Variety,andInventoryDecisionsforProduct
LinesofSubstitutableItems.................................................367
BacelMaddah,EbruK.Bish,andBrendaMunroe
15 ManagingPerishableandAgingInventories:Reviewand
FutureResearchDirections..................................................393
ItirZ.Karaesmen,AlanScheller-Wolf,andBorgaDeniz
16 OptimizationModelsofProductionPlanningProblems.................437
HubertMissbauerandRehaUzsoy
17 AggregateModelingofManufacturingSystems..........................509
ErjenLefeberandDieterArmbruster
18 RobustStabilityAnalysisofDecentralizedSupplyChains..............537
YanfengOuyangandCarlosDaganzo
19 SimulationinProductionPlanning:AnOverviewwith
Emphasis on Recent Developments in Cycle Time
Estimation.....................................................................565
Bruce E. Ankenman,Jennifer M. Bekki, John Fowler,
GeraldT.Mackulak,BarryL.Nelson,andFengYang
20 Simulation-Optimizationin Support of Tacticaland
StrategicEnterpriseDecisions ..............................................593
JuanCamiloZapata,JoesphPekny,andGintarasV.Reklaitis
AuthorIndex........................................................................629
SubjectIndex.......................................................................643
Acknowledgements
Theprocessbywhichthesevolumescametofruitionhasbeenalongone,andwe
are grateful to many different people for their support, advice and contributions.
First among these are the contributingauthors– withoutthem, there would be no
book, and we are deeply grateful to them for bearing with our repeated requests
formaterialsandrevisionswhileprovidingthehigh-qualitycontributionsworthyof
thesevolumes.Themanyreviewerswhogavetheirtimeandefforttohelpimprove
thechaptersarealsogratefullyacknowledged.
ThanksarealsoduetoProfessorF.Hillier,theEditorofthisSeries,forsupport-
ingtheproject,andtoGaryFolven,underwhoseguidancetheprojecttookshape,
andwhosustainedusthroughthefirst4yearsuntilhiswell-deservedretirement.His
manycontributionstooperationsresearchoveralonganddistinguishedpublishing
careerwillstandforalongtime.NeilLevineandMatthewAmboyofSpringersaw
thevolumesthroughproduction,nudgingtheeditorialteamwhennecessaryandex-
hibitingresourcefulnessandpatienceaboveandbeyondthecallofduty.Thanksare
alsoduetoCarrieBrooksofNorthCarolinaState Universityforpreparingthelist
ofauthorsforindexingatveryshortnotice.
An undertaking of this magnitude and duration would simply not be possible
without a collegial, mutually supporting editorial team. It has been a privilege to
worktogetheronthisproject;wehavealllearntfromeachotherandfromtheau-
thorswho have contributed,and are gratefulto have had this opportunityto work
withsomeofthebestinourfield.
Finally, we would like to thank our families, who have had to put up with late
nights and grumpy mornings over the duration of the project, and without whose
supportandunderstandingourliveswouldbemuchpoorerinmanyways.
vii
Contributors
Bruce E. Ankenman DepartmentofIndustrialEngineeringandManagement
Sciences,NorthwesternUniversity,2145SheridanRd.,Evanston,IL60208,USA,
[email protected]
Dieter Armbruster Departmentof Mathematics, Arizona State University,
Tempe,AZ85287-1804,USA,[email protected]
Tolga Aydinliyim Decision Sciences Department, Charles H. Lundquist
CollegeofBusiness1208,UniversityofOregonEugene,OR97403-1208,USA,
[email protected]
JenniferM.Bekki DepartmentofEngineering,ArizonaStateUniversityatthe
PolytechnicCampus,7231E.SonoranArroyoMall,Room230,Mesa,AZ85212,
USA,[email protected]
EbruK.Bish GradoDepartmentofIndustrialandSystemsEngineering(0118),
250DurhamHall,VirginiaTech,Blacksburg,VA24061,USA,[email protected]
RobertC.Carlson ManagementScienceandEngineeringDepartment,Stanford
University,Stanford,CA94305-4026,USA
CarlosDaganzo DepartmentofCivilandEnvironmentalEngineering,Instituteof
TransportationStudies,UniversityofCalifornia,Berkeley,CA94720,USA
BorgaDeniz TheJosephW.Luter,IIISchoolofBusinessChristopherNewport
UniversityNewportNews,VA23606,USA,[email protected]
LauraDionne IntelCorporation,Hillsboro,OR,USA
SalahE.Elmaghraby NorthCarolinaStateUniversity,Raleigh,NC27695-7906,
USA,[email protected]
FeryalErhun DepartmentofManagementScienceandEngineering,Stanford
UniversityStanford,CA94305-4026,USA,[email protected]
JohnFowler DepartmentofIndustrialEngineering,ArizonaStateUniversity,PO
Box875906,TempeAZ85287-5906,USA,[email protected]
StephenC.Graves MIT,77MassachusettsAvenue,E62-579,CambridgeMA
02139-4307,USA,[email protected]
ix
x Contributors
Aliza Heching IBM Research Division, T. J. Watson Research Center, 1101
KitchawanRoad,YorktownHeights,NY10598,USA,[email protected]
JonathanR.M.Hosking IBMResearchDivision,T.J.WatsonResearchCenter,
1101KitchawanRoad,YorktownHeights,NY10598,USA,
[email protected]
Itir Z. Karaesmen Kogod School of Business, American University, 4400
MassachusettsAvenueNW,WashingtonDC20016,[email protected]
Karl G. Kempf Intel Corporation, 5000 W. Chandler Blvd., MS CH3-10,
Chandler,Arizona85226,USA,[email protected]
Pinar Keskinocak School of Industrial and Systems Engineering, Georgia
InstituteofTechnologyAtlanta,GA30332-0205,USA,[email protected]
AlanKing IBMResearchDivision,T.J.WatsonResearchCenter,1101Kitchawan
Road,YorktownHeights,NY10598,USA,[email protected]
ErjenLefeber DepartmentofMechanicalEngineering,EindhovenUniversityof
Technology,POBox513,Eindhoven,TheNetherlands,[email protected]
Gerald T. Mackulak Department of Industrial Engineering, Arizona State
University,POBox875906,TempeAZ85287-5906,USA,[email protected]
Bacel Maddah EngineeringManagementProgram, American University of
Beirut,Beirut11072020,Lebanon,[email protected]
Kenneth N. McKay Department of Management Sciences, University of
Waterloo,Waterloo,ON,Canada,[email protected]
HubertMissbauer DepartmentofInformationSystems,ProductionandLogistics
Management,UniversityofInnsbruck,Universita¨tstrasse1,5InnsbruckA-6020,
Austria,[email protected]
BrendaMunroe HannafordBros.,145PleasantHillRd,Scarborough,ME04074,
USA,[email protected]
BarryL.Nelson DepartmentofIndustrialEngineering&ManagementSciences,
Northwestern University, 2145 Sheridan Road, Room C250, Evanston, IL
60208-3119,USA,[email protected]
YanfengOuyang DepartmentofCivilandEnvironmentalEngineering,University
ofIllinoisatUrbana-Champaign,Urbana,IL61801,USA,[email protected]
Irfan M. Ovacik Intel Corporation,6505 W. Chandler Blvd., Chandler, AZ
85226,USA,[email protected]
O¨zalp O¨zer The University of Texas at Dallas, School of Management,
Office:SOM 3.412,800West CampbellRoad,Richardson,Texas75080-3021,
[email protected]
JoesphPekny CollegeofEngineering,PurdueUniversity,West Lafayette,IN
47907,USA,[email protected]
