Stochastic operational planning model for production and distribution in a hi-tech manufacturing network
by Sandeep Dulluri, N.R. Srinivasa Raghavan
International Journal of Operational Research (IJOR), Vol. 5, No. 2, 2009

Abstract: Hi-tech industries are complex in nature, offering a variety of products, shorter product life-cycles, volatile demand. Hi-tech manufacturers are forced to commit in advance to the customers the amount they can deliver by the specified due-date. In this work, we consider a single manufacturer and multi-assembler supply chain setting with multiple products, multi-period demand, learning rates etc. We develop a stochastic optimisation model, wherein underlying scenarios happen to be Mixed Integer Linear Programs. We solve the stochastic MILPs via by simulation of scenarios. Our focus is mainly on the multi-product ATP strategies that maximise the net profit of the manufacturer.

Online publication date: Wed, 06-May-2009

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