Optimal assignment of resources to strengthen the weakest link in an uncertain environment

Optimal assignment of resources to strengthen the weakest link in an uncertain environment

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Article ID: iaor20116879
Volume: 186
Issue: 1
Start Page Number: 159
End Page Number: 173
Publication Date: Jun 2011
Journal: Annals of Operations Research
Authors:
Keywords: programming: assignment, supply & supply chains
Abstract:

The weakest link principle applies to many real‐life situations where a system is as productive as its bottleneck. The purpose of this paper is to show how the efficiency of a manufacturing or service process (i.e., the strength of a chain) may be maximized by optimal allocation of resources to improve the performance of the bottleneck (i.e., strengthen the weakest link) in an uncertain environment. Specifically, we consider two different versions of the stochastic bottleneck assignment problem (SBAP), which is a variation of the classic assignment problem (AP), with respective goals of minimizing the expected longest processing time and maximizing the expected lowest production rate. It is proven that each of the two intrinsically difficult SBAPs is reducible to an efficiently solvable AP provided that the processing times or the production rates are independent random variables following some families of probability distributions.

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