Disruption management has recently become an active area of research. In this study, an extension is made to consider the fact that some products may deteriorate during storage. A productioninventory model for deteriorating items with production disruptions is developed. Then the optimal production and inventory plans are provided, so that the manufacturer can reduce the loss caused by disrupti...

In most production-inventory systems, the products are transferred from the production centre to the inventory (warehouse) in subbatchs rather than one at a time. In this paper, mathematical models of such systems for both deterministic and stochastic cases of demand are developed and analysed. Comparison of these new models with the EBQ model shows a considerable loss when applying the ru...

Increasing energy efficiency is one of the main objectives of the Directive 2009/28/EC of the European Commission (called 20-20-20), which aims at decreasing greenhouse gas emissions by jointly increasing the use of renewable energy and improving energy efficiency, all by 20% until 2020. To reduce energy consumption in producing and distributing products, it is of major importance to consider e...

This paper considers the optimality of order aggregation in a single-item productioninventory problem with advance demand information and a restricted production capacity. The advance demand information is modeled by introducing a positive customer order lead time. The paper proves, when customer order lead times are less than a threshold value, it is allowed to aggregate the orders over time w...

Despite availability of advanced decision aids, manufacturing managers should master basic control tasks within production systems. Still, there is substantial evidence that even highly educated and experienced practitioners mismanage even very simple production-inventory systems. We report an experimental study investigating strategies in a simple productioninventory control task. The study wa...

This study examines the optimal run time for the economic manufacturing quantity (EMQ) model with failure-in-work, backlogging, and random breakdown happening in stock-piling time. A recent article by Chiu and Chiu [Mathematical modeling for production system with backlogging and failure in repair, Journal of Scientific & Industrial Research, 65 (2006) 499-506] investigated optimal lot-size for...

The bottleneck in a production-inventory network is commonly taken to be the facility that most limits flow through the network and thus the most highly utilized facility. A further connotation of “bottleneck,” however, is the facility that most constrains system-wide performance or the facility at which additional resources would have the greatest impact. Adopting this broader sense of the ter...

In this note we show that multiple solutions exist for the productioninventory example in the seminal paper on adjustable robust optimization in [2]. All these optimal robust solutions have the same worst-case objective value, but the mean objective values differ up to 21.9% and for individual realizations this difference can be up to 59.4%. We show via additional experiments that these differe...

We consider coordination among stocking locations through replenishment strategies that explicitly take into account lateral transshipments, i.e., transfer of a product among locations at the same echelon level. Our basic contribution is the incorporation of supply capacity into the traditional transshipment model. Our goal is to analyze the impact on system behavior and on stocking locations’ ...

OPAC-2, was a simplification of the OPAC-1 algorithm. A rolling horizon concept was later introduced in the algorithm. This concept is used mainly by operations research analysts in productioninventory control. The algorithm was renamed ROPAC. At this point the algorithm was still an off-line program. The ROPAC program was reorganized for implementation in real time and called OPAC-RT Version 1...