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 language | English |
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Title of host publication | 2004 IEEE International Conference on Systems, Man and Cybernetics, SMC 2004 |
Place of Publication | Piscataway, NJ |
Publisher | Institute of Electrical and Electronics Engineers (IEEE) |
Pages | 6009-6014 |
Number of pages | 6 |
Volume | 7 |
ISBN (Print) | 0780385667 |
DOIs | |
Publication status | Published - 2004 |
Externally published | Yes |
Event | 2004 IEEE International Conference on Systems, Man and Cybernetics, SMC 2004 - The Hague, Netherlands Duration: 10 Oct 2004 → 13 Oct 2004 |
Other
Other | 2004 IEEE International Conference on Systems, Man and Cybernetics, SMC 2004 |
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Country/Territory | Netherlands |
City | The Hague |
Period | 10/10/04 → 13/10/04 |
Keywords
- Delivery uncertainty
- Logistics and supply chain management
- Perishable product