The joint transshipment and production control policies for multi-location production/inventory systems
In this paper, we study the joint transshipment and production control policies for multi-location production/inventory systems in which items are manufactured and stocked at each location to meet incoming demand. We formulate the problem as a make-to-stock queue to gain insight into the following q...
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sg-ntu-dr.10356-1445662023-05-19T07:31:16Z The joint transshipment and production control policies for multi-location production/inventory systems Bhatnagar, Rohit Lin, Bing Nanyang Business School Business::Operations management Inventory Transshipment In this paper, we study the joint transshipment and production control policies for multi-location production/inventory systems in which items are manufactured and stocked at each location to meet incoming demand. We formulate the problem as a make-to-stock queue to gain insight into the following questions: (1) How much demand at a location should be covered by transshipment from other locations, and when to produce or stop production? (2) Is there a simple structure associated with the optimal policy, and whether a simple decision rule can be implemented for transshipment control? (3) Can effective heuristic policies be developed to solve the multi-location problems? For the two-location problem, we characterize the optimal policy as monotone switching-curve policy. To address the multi-location problem, we develop two heuristic policies. One is obtained from the one-step policy improvement based on policy iteration and the other from the one-step lookahead method based on the approximation of the optimal cost function. Numerical examples are used to illustrate the optimal and heuristic policies and compare their performance for various cases. Accepted version 2020-11-13T01:24:04Z 2020-11-13T01:24:04Z 2018 Journal Article Bhatnagar, R., & Lin, B. (2019). The joint transshipment and production control policies for multi-location production/inventory systems. European Journal of Operational Research, 275(3), 957-970. doi:10.1016/j.ejor.2018.12.025 0377-2217 https://hdl.handle.net/10356/144566 10.1016/j.ejor.2018.12.025 3 275 957 970 en European Journal of Operational Research © 2018 Elsevier B.V. All rights reserved. This paper was published in European Journal of Operational Research and is made available with permission of Elsevier B.V. application/pdf |
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Business::Operations management Inventory Transshipment Bhatnagar, Rohit Lin, Bing The joint transshipment and production control policies for multi-location production/inventory systems |
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In this paper, we study the joint transshipment and production control policies for multi-location production/inventory systems in which items are manufactured and stocked at each location to meet incoming demand. We formulate the problem as a make-to-stock queue to gain insight into the following questions: (1) How much demand at a location should be covered by transshipment from other locations, and when to produce or stop production? (2) Is there a simple structure associated with the optimal policy, and whether a simple decision rule can be implemented for transshipment control? (3) Can effective heuristic policies be developed to solve the multi-location problems? For the two-location problem, we characterize the optimal policy as monotone switching-curve policy. To address the multi-location problem, we develop two heuristic policies. One is obtained from the one-step policy improvement based on policy iteration and the other from the one-step lookahead method based on the approximation of the optimal cost function. Numerical examples are used to illustrate the optimal and heuristic policies and compare their performance for various cases. |
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Nanyang Business School |
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Nanyang Business School Bhatnagar, Rohit Lin, Bing |
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Article |
author |
Bhatnagar, Rohit Lin, Bing |
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Bhatnagar, Rohit |
title |
The joint transshipment and production control policies for multi-location production/inventory systems |
title_short |
The joint transshipment and production control policies for multi-location production/inventory systems |
title_full |
The joint transshipment and production control policies for multi-location production/inventory systems |
title_fullStr |
The joint transshipment and production control policies for multi-location production/inventory systems |
title_full_unstemmed |
The joint transshipment and production control policies for multi-location production/inventory systems |
title_sort |
joint transshipment and production control policies for multi-location production/inventory systems |
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2020 |
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https://hdl.handle.net/10356/144566 |
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1772828470434332672 |