Book•
Production and Operations Analysis
01 Dec 1992-
TL;DR: Chapter 1 Strategy and Competition Chapter 2 Forecasting Chapter 3 Aggregate Planning Supplement 1 Linear Programming Chapter 4 Inventory Control Subject to Known Demand Chapter 5 Inventory Control subject to Uncertain Demand Chapter 6 Supply Chain Management Chapter 7 Push and Pull Production Control Systems: MRP and JIT.
Abstract: Chapter 1 Strategy and Competition Chapter 2 Forecasting Chapter 3 Aggregate Planning Supplement 1 Linear Programming Chapter 4 Inventory Control Subject to Known Demand Chapter 5 Inventory Control Subject to Uncertain Demand Chapter 6 Supply Chain Management Chapter 7 Push and Pull Production Control Systems: MRP and JIT Chapter 8 Operations Scheduling Supplement 2 Queuing Theory Chapter 9 Project Scheduling Chapter 10 Facilities Layout and Location Chapter 11 Quality and Assurance Chapter 12 Reliability and Maintainability Appendix Tables Index
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TL;DR: This chapter extends the newsvendor model by allowing the retailer to choose the retail price in addition to the stocking quantity, and discusses an infinite horizon stochastic demand model in which the retailer receives replenishments from a supplier after a constant lead time.
Abstract: Publisher Summary This chapter reviews the supply chain coordination with contracts. Numerous supply chain models are discussed. In each model, the supply chain optimal actions are identified. The chapter extends the newsvendor model by allowing the retailer to choose the retail price in addition to the stocking quantity. Coordination is more complex in this setting because the incentives provided to align one action might cause distortions with the other action. The newsvendor model is also extended by allowing the retailer to exert costly effort to increase demand. Coordination is challenging because the retailer's effort is noncontractible—that is, the firms cannot write contracts based on the effort chosen. The chapter also discusses an infinite horizon stochastic demand model in which the retailer receives replenishments from a supplier after a constant lead time. Coordination requires that the retailer chooses a large basestock level.
2,626 citations
TL;DR: A case where lean principles were adapted for the process sector for application at a large integrated steel mill is described, and a simulation model is developed to contrast the “before” and “after” scenarios in detail.
1,007 citations
Cites background from "Production and Operations Analysis"
...A very brief description of the most common lean tools is given below (Monden, 1998; Feld, 2000; Nahmias, 2001); the interested reader is referred to one of the many books on lean manufacturing for more details:...
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...A very brief description of the most common lean tools is given below (Monden, 1998; Feld, 2000; Nahmias, 2001); the interested reader is referred to one of the many books on lean manufacturing for more details: Cellular manufacturing: Organizes the entire process for a particular product or…...
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TL;DR: A review of the literature on stochastic and robust facility location models can be found in this article, where the authors illustrate both the rich variety of approaches for optimization under uncertainty and their application to facility location problems.
Abstract: Plants, distribution centers, and other facilities generally function for years or decades, during which time the environment in which they operate may change substantially. Costs, demands, travel times, and other inputs to classical facility location models may be highly uncertain. This has made the development of models for facility location under uncertainty a high priority for researchers in both the logistics and stochastic/robust optimization communities. Indeed, a large number of the approaches that have been proposed for optimization under uncertainty have been applied to facility location problems. This paper reviews the literature on stochastic and robust facility location models. Our intent is to illustrate both the rich variety of approaches for optimization under uncertainty that have appeared in the literature and their application to facility location problems. In a few instances for which examples in facility location are not available, we provide examples from the more general logistics l...
970 citations
Cites background from "Production and Operations Analysis"
...inventory policy whose cost is approximated as the cost of an EOQ policy plus that of safety stock (see, e.g., Nahmias 2001 )....
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TL;DR: In this article, the optimality of Scarf's ordering rule for the newsboy problem with only the mean and the variance of the demand are known is analyzed, and the analysis is extended to the fixed ordering cost case, where a fixed cost is charged for placing an order, and to the case of random yields.
Abstract: We present here a new, very compact, proof of the optimality of Scarf's ordering rule for the newsboy problem where only the mean and the variance of the demand are known. We then extend the analysis to the recourse case, where there is a second purchasing opportunity; to the fixed ordering cost case, where a fixed cost is charged for placing an order; to the case of random yields; and to the multi-item case, where multiple items compete for a scarce resource.
762 citations
Cites background from "Production and Operations Analysis"
...(9) Note that the lower bound in (9) is strictly larger than that in (6) so the lower bound on the expected profit is larger when there is a second purchasing opportunity....
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...S. NAHMIAS (1989) Production and Operations Analysis....
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...In the presence of the modification, the lower bound on the expected profit is given by the positive part of the lower bound in (6)....
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...to a negative value in the left side of (6)....
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...(14) cm Lc[2UA+(md) Notice that (13) and (14) reduce to (5) and (6) when p = 1....
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TL;DR: This paper studies a distribution system in which a manufacturer supplies a common product to two independent retailers, who in turn use service as well as retail price to directly compete for end customers.
Abstract: This paper studies a distribution system in which a manufacturer supplies a common product to two independent retailers, who in turn use service as well as retail price to directly compete for end customers. We examine the drivers of each firm's strategy, and the consequences for total sales, market share, and profitability. We show that the relative intensity of competition with respect to each competitive dimension plays a key role, as does the degree of cooperation between the retailers. We discover a number of insights concerning the preferences of each party regarding competition. For instance, there will be circumstances under which both retailers would prefer an increase in competitive intensity. Our analysis generalizes existing knowledge about manufacturer wholesale pricing strategies, and rationalizes behaviors that would not be evident without both price and service competition. Finally, we characterize the structure of wholesale pricing mechanisms that can coordinate the system, and show that the most commonly used formats (those that are linear in the order quantity) can achieve coordination only under very limiting conditions.
706 citations