Approximate analysis of decentralized, multi-stage, pull-type production/inventory systems

Approximate analysis of decentralized, multi-stage, pull-type production/inventory systems

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Article ID: iaor20042563
Country: Netherlands
Volume: 125
Issue: 1
Start Page Number: 95
End Page Number: 116
Publication Date: Jan 2004
Journal: Annals of Operations Research
Authors: ,
Keywords: inventory
Abstract:

We consider a decentralized, pull-type manufacturing system with each stage having its own input and output stock keeping activities. Material handling between stages is carried out according to a fixed quantity, non-constant withdrawal cycle. We approximate the system behavior using a two-node decomposition approach, which decomposes the system into smaller subsystems. The analysis of two-node subsystems is achieved using a matrix-recursive approach due to phase-type modeling of certain random variables. Our solution algorithm resolved a major difficulty (due to batch transfers) in the analytical approch to study multi-stage manufacturing systems. We also discuss system behavior and suggest several rules-of-thumb to improve system performance.

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