A heuristic to control integrated multi-product multi-machine production-inventory systems with job shop routings and stochastic arrival, set-up and processing times

• Published in: OR Spectrum Vol. 27; no. 2-3; pp. 399 - 434
• Main Authors: Van Nyen, P. L. M., Bertrand, J. W. M., Van Ooijen, H. P. G., Vandaele, N. J.
• Format: Journal Article
• Language: English
• Published: Heidelberg Springer Nature B.V 01-06-2005
• Subjects: Heuristic; Inventory control; Inventory management; Job shops; Operations research; Production planning; Simulation; Stochastic models; Studies
• ISSN: 0171-6468; 1436-6304
• DOI: 10.1007/s00291-005-0200-3

This paper investigates a multi-product multi-machine production-inventory system, characterized by job shop routings and stochastic demand interarrival times, set-up times and processing times. The inventory points and the production system are controlled integrally by a centralized decision maker. We present a heuristic that minimizes the relevant costs by making near-optimal production and inventory control decisions while target customer service levels are satisfied. The heuristic is tested in an extensive simulation study and the results are discussed. [PUBLICATION ABSTRACT]