Stochastic operational planning model for production and distribution in a hi-tech manufacturing network. (7th May 2009)

• Record Type: Journal Article
• Authors: Dulluri, Sandeep; Srinivasa Raghavan, N.R.
• Is Part Of: International journal of operational research. Volume 5:Number 2(2009)
• Page Start: 163
• Page End: 189
• Publication Date: 2009-05-07
• Subjects: revenue management -- multi-product available to promise -- cancellation -- manufacturing flexibility -- lead time flexibility -- manufacturing options -- logistics options -- operational planning -- hi-tech manufacturing -- simulation -- stochastic optimisation -- modelling -- production planning -- distribution planning -- high technology -- high-tech manufacturing -- manufacturing networks; Operations research -- Periodicals; 003.05
• Languages: English
• ISSNs: 1745-7645

Abstract

Hi-tech industries are complex in nature, offering a variety of products, shorter product life-cycles, volatile demand. Hi-tech manufacturers are forced to commit in advance to the customers the amount they can deliver by the specified due-date. In this work, we consider a single manufacturer and multi-assembler supply chain setting with multiple products, multi-period demand, learning rates etc. We develop a stochastic optimisation model, wherein underlying scenarios happen to be Mixed Integer Linear Programs. We solve the stochastic MILPs via by simulation of scenarios. Our focus is mainly on the multi-product ATP strategies that maximise the net profit of the manufacturer.