Deterministic Approximations to Co-Production Problems with Service Constraints and Random Yields

• Main Authors: BITRAN, Gabriel R., LEONG, Thin Yin
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 1992
• Subjects: simultaneous production; production planning with uncertain yields; co-production; by-products; dynamic programming; substitutability; Computer Sciences; Management Information Systems; Operations Research, Systems Engineering and Industrial Engineering
• Online Access: https://ink.library.smu.edu.sg/sis_research/155; https://ink.library.smu.edu.sg/context/sis_research/article/1154/viewcontent/DeterministicApproxCo_productionProblems.pdf
• Institution: Singapore Management University

Production planning problems where multiple item categories are produced simultaneously are examined. The items have random yields and are used to satisfy the demands of many products. These products have specification requirements that overlap. An item originally targeted to satisfy the demand of one product may be used to satisfy the demand of other products when it conforms to their specifications. Customers' demand must be satisfied from inventory. The problem is formulated with service constraints and a near-optimal solution is provided to the problem with a fixed planning horizon. Simple heuristics are proposed for the problem solved with a rolling horizon. Some of the heuristics performed very well over a wide range of parameters.