Key performance indicators for supply planning of multilevel serial systems with stochastic lead times
This paper examines a supply planning problem for multilevel serial production systems under lead time uncertainties. The techniques used in industry are often based on the assumption that the lead times are known. However, in a supply chain the lead times are often random variables. Therefore, it is necessary to evaluate the influence of the planned lead times on the total cost. An exact performance evaluation technique is developed to calculate the total cost as a function of the planned lead times when the actual lead times are random discrete variables. The sum of the average component holding and tardiness costs at each level, plus the average finished product backlogging cost is considered. Several properties of this function are proven. A numerical example is reported.
Bibliogr. 17 poz., rys.
- CHATFIELD, D., KIM, J., HARRISON, T. and HAYYA, J. (2004) The bullwhip effect in supply chains - impact of stochastic lead times, information quality, and information sharing: A simulation study. Production and Operations Management 13 (4), 340-353.
- CHEN, F., DREZNER, Z., RYAN, J. and SIMCHI-LEVI, D. (2000) Quantifying the bullwhip effect in assembly supply chain: the impact of forecasting, lead times and information. Management Science 46 (3), 436-443.
- DOLGUI, A. and LOULY, M.A. (2002) A Model for supply planning under lead time uncertainty. International Journal of Production Economics 78, 145-152.
- DOLGUI, A. and PRODHON, C. (2007) Supply planning under uncertainties in MRP environments: A state of the art. Annual Reviews in Control 31 (2), 269-279.
- ELHAFSI, M. (2002) Optimal leadtimes planning in serial production systems with earliness and tardiness costs. IIE Transactions 34, 233-243.
- GRASSO, E.T. and TAYLOR, B.W. (1984) A Simulation-Based Experimental Investigation of Supply/Timing Uncertainty in MRP Systems. International Journal of Production Research 22 (3), 485-497.
- HE, X.J., KIM, J.G. and HAYYA, J.C. (2005) The cost of lead-time variability: The case of the exponential distribution. International Journal of Production Economics 97 (2), 130-142.
- HNAIEN, F., DOLGUI, A., MARIAN, H. and LOULY, M.A. (2007) Planning order release dates for multilevel linear supply chain with random lead times. Systems Science 31 (1), 19-25.
- KIM, J.G., SUN, D., HE, X.J. and HAYYA, J.C. (2004) The (s,Q) inventory model with Erlang time and deterministic demand. Naval Research Logistics 51, 906-923.
- KIM, J.G., CHATFIELD, D., HARRISON, T.P. and HAYYA, J.C. (2006) Quantifying the bullwhip effect in a supply chain with stochastic lead time. European Journal of Operational Research 173 (2), 617-636.
- LOULY, M.A. and DOLGUI, A. (2002) Generalized newsboy model to compute the optimal planned lead times in assembly systems. International Journal of Production Research 40 (17), 4401-4414.
- LOULY, M.A., DOLGUI, A. and HNAIEN, F. (2008) Optimal supply planning in MRP environments for assembly systems with random component procurement times. International Journal of Production Research 46 (19), 5441-5467.
- MULA, J., POLER, R., GARCIA-SABATER, J.P. and LARIO, F.C. (2006) Models for production planning under uncertainty: A review. International Journal of Production Economics 103, 271-285.
- WEEKS, J.K. (1981) Optimizing Planned Lead Times and Delivery Dates. 21st Annual Conference Proceedings, American Production and Inventory Control Society, 177-188.
- WHYBARK, D.C. and WILLIAMS, J.G. (1976) Material Requirements Planning under uncertainty. Decision Science 7, 595-606.
- YANO, C.A. (1987a) Setting planned leadtirnes in serial production systems with tardiness costs. Management Science 33 (1), 95-106.
- YANO, C.A. (1987b) Planned leadtirnes for serial production systems. IIE Transactions 19 (3), 300-307.