Optimal production decisions under an uncertain deadline

Xiaoqiang Cai*, Xiaolin Xu, Xian Zhou

*Corresponding author for this work

Research output: Chapter in Book/Report/Conference proceedingConference proceeding contributionpeer-review

Abstract

We consider the following problem in a production-distribution supply chain: A manufacturer is to produce a variety of products. Each product has a due date, and requires an amount of processing time to complete. In addition, it is expected that the finished products will be delivered by a transporter with uncertain arrival time. There will be a substantial cost incurred if a product cannot be delivered by the transporter. The problem is to determine the optimal production policy by taking into account the probability of the random arrival time of the transporter, so that the expected loss is minimized. We find the specific structures of the optimal policies in different situations.

Original languageEnglish
Title of host publication2004 IEEE International Conference on Systems, Man and Cybernetics, SMC 2004
Place of PublicationPiscataway, NJ
PublisherInstitute of Electrical and Electronics Engineers (IEEE)
Pages6009-6014
Number of pages6
Volume7
ISBN (Print)0780385667
DOIs
Publication statusPublished - 2004
Externally publishedYes
Event2004 IEEE International Conference on Systems, Man and Cybernetics, SMC 2004 - The Hague, Netherlands
Duration: 10 Oct 200413 Oct 2004

Other

Other2004 IEEE International Conference on Systems, Man and Cybernetics, SMC 2004
CountryNetherlands
CityThe Hague
Period10/10/0413/10/04

Keywords

  • Delivery uncertainty
  • Logistics and supply chain management
  • Perishable product

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