IDEAS home Printed from https://ideas.repec.org/a/eee/jomega/v35y2007i2p237-246.html
   My bibliography  Save this article

Resource portfolio planning of make-to-stock products using a constraint programming-based genetic algorithm

Author

Listed:
  • Wang, S.M.
  • Chen, J.C.
  • Wang, K.-J.

Abstract

The investment on facilities for manufacturing high-tech products requires a large amount of capital. Even though the demands of such products change dramatically, a company is forced to implement some make-to-stock policies apart from a regular make-to-order production, so that the capacity of expensive resources can be highly utilized. The inherent characteristics to be considered include finite budget for investing resources, lump demands of customers, long production horizon, many types of products to mix simultaneously, time value of capital and asset, technology innovation of resources, efficient usage of multiple-function machines, and limited capacity of resources. In addition to revenue gained from products and the salvage/assets of resources, a decision maker also needs to consider costs regarding inventory, backorder, and resource acquisition-related costs through procurement, renting, and transfer. This study thus focuses on the following issues: (i) how to decide on resources portfolio regarding the way and timing of acquisting resources, and (ii) how to allocate resources to various orders in each production period. The goal is to maximize the long-term profit. This study formulates the problem as a non-linear mixed integer mathematical programming model. A constraint programming-based genetic algorithm is developed. It has been demonstrated to solve the problem efficiently.

Suggested Citation

  • Wang, S.M. & Chen, J.C. & Wang, K.-J., 2007. "Resource portfolio planning of make-to-stock products using a constraint programming-based genetic algorithm," Omega, Elsevier, vol. 35(2), pages 237-246, April.
    • Handle: RePEc:eee:jomega:v:35:y:2007:i:2:p:237-246
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0305-0483(05)00086-1
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Swaminathan, Jayashankar M., 2000. "Tool capacity planning for semiconductor fabrication facilities under demand uncertainty," European Journal of Operational Research, Elsevier, vol. 120(3), pages 545-558, February.
    2. Bashyam, T. C. A., 1996. "Competitive capacity expansion under demand uncertainty," European Journal of Operational Research, Elsevier, vol. 95(1), pages 89-114, November.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Smirnov, Dina & van Jaarsveld, Willem & Atan, Zümbül & de Kok, Ton, 2021. "Long-term resource planning in the high-tech industry: Capacity or inventory?," European Journal of Operational Research, Elsevier, vol. 293(3), pages 926-940.
    2. Li, Gang & Jiang, Hongxun & He, Tian, 2015. "A genetic algorithm-based decomposition approach to solve an integrated equipment-workforce-service planning problem," Omega, Elsevier, vol. 50(C), pages 1-17.
    3. Ramasesh, Ranga V., 2010. "Lot-sizing decisions under limited-time price incentives: A review," Omega, Elsevier, vol. 38(3-4), pages 118-135, June.
    4. Hsu, P.H. & Wee, H.M. & Teng, H.M., 2010. "Preservation technology investment for deteriorating inventory," International Journal of Production Economics, Elsevier, vol. 124(2), pages 388-394, April.
    5. Martínez-Costa, Carme & Mas-Machuca, Marta & Benedito, Ernest & Corominas, Albert, 2014. "A review of mathematical programming models for strategic capacity planning in manufacturing," International Journal of Production Economics, Elsevier, vol. 153(C), pages 66-85.
    6. Cherri, Luiz Henrique & Carravilla, Maria Antónia & Ribeiro, Cristina & Toledo, Franklina Maria Bragion, 2019. "Optimality in nesting problems: New constraint programming models and a new global constraint for non-overlap," Operations Research Perspectives, Elsevier, vol. 6(C).
    7. Bian, Yuan & Lemoine, David & Yeung, Thomas G. & Bostel, Nathalie & Hovelaque, Vincent & Viviani, Jean-laurent & Gayraud, Fabrice, 2018. "A dynamic lot-sizing-based profit maximization discounted cash flow model considering working capital requirement financing cost with infinite production capacity," International Journal of Production Economics, Elsevier, vol. 196(C), pages 319-332.
    8. Ghasemi, Elaheh & Lehoux, Nadia & Rönnqvist, Mikael, 2024. "A multi-level production-inventory-distribution system under mixed make to stock, make to order, and vendor managed inventory strategies: An application in the pulp and paper industry," International Journal of Production Economics, Elsevier, vol. 271(C).
    9. Yamani Douzi Sorkhabi, Sami & Romero, David A. & Beck, J. Christopher & Amon, Cristina H., 2018. "Constrained multi-objective wind farm layout optimization: Novel constraint handling approach based on constraint programming," Renewable Energy, Elsevier, vol. 126(C), pages 341-353.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Metin Çakanyıldırım & Robin O. Roundy & Samuel C. Wood, 2004. "Optimal machine capacity expansions with nested limitations under stochastic demand," Naval Research Logistics (NRL), John Wiley & Sons, vol. 51(2), pages 217-241, March.
    2. Wang, K.-J. & Wang, S.-M. & Chen, J.-C., 2008. "A resource portfolio planning model using sampling-based stochastic programming and genetic algorithm," European Journal of Operational Research, Elsevier, vol. 184(1), pages 327-340, January.
    3. Wang, K.-J. & Wang, S.-M. & Yang, S.-J., 2007. "A resource portfolio model for equipment investment and allocation of semiconductor testing industry," European Journal of Operational Research, Elsevier, vol. 179(2), pages 390-403, June.
    4. Francisco Barahona & Stuart Bermon & Oktay Günlük & Sarah Hood, 2005. "Robust capacity planning in semiconductor manufacturing," Naval Research Logistics (NRL), John Wiley & Sons, vol. 52(5), pages 459-468, August.
    5. Kamath, Narasimha B. & Roy, Rahul, 2007. "Capacity augmentation of a supply chain for a short lifecycle product: A system dynamics framework," European Journal of Operational Research, Elsevier, vol. 179(2), pages 334-351, June.
    6. Romauch, Martin & Hartl, Richard F., 2017. "Capacity planning for cluster tools in the semiconductor industry," International Journal of Production Economics, Elsevier, vol. 194(C), pages 167-180.
    7. Chien, Chen-Fu & Wu, Cheng-Hung & Chiang, Yu-Shian, 2012. "Coordinated capacity migration and expansion planning for semiconductor manufacturing under demand uncertainties," International Journal of Production Economics, Elsevier, vol. 135(2), pages 860-869.
    8. Smirnov, Dina & van Jaarsveld, Willem & Atan, Zümbül & de Kok, Ton, 2021. "Long-term resource planning in the high-tech industry: Capacity or inventory?," European Journal of Operational Research, Elsevier, vol. 293(3), pages 926-940.
    9. Lin, James T. & Chen, Tzu-Li & Chu, Hsiao-Ching, 2014. "A stochastic dynamic programming approach for multi-site capacity planning in TFT-LCD manufacturing under demand uncertainty," International Journal of Production Economics, Elsevier, vol. 148(C), pages 21-36.
    10. Hongmin Li & Stephen C. Graves & Woonghee Tim Huh, 2014. "Optimal Capacity Conversion for Product Transitions Under High Service Requirements," Manufacturing & Service Operations Management, INFORMS, vol. 16(1), pages 46-60, February.
    11. Kai Huang & Shabbir Ahmed, 2009. "The Value of Multistage Stochastic Programming in Capacity Planning Under Uncertainty," Operations Research, INFORMS, vol. 57(4), pages 893-904, August.
    12. T. C. A. Bashyam, 2000. "Service Design and Price Competition in Business Information Services," Operations Research, INFORMS, vol. 48(3), pages 362-375, June.
    13. Aïd, René & Li, Liangchen & Ludkovski, Michael, 2017. "Capacity expansion games with application to competition in power generation investments," Journal of Economic Dynamics and Control, Elsevier, vol. 84(C), pages 1-31.
    14. Chen, Wenliang & Wang, Zheng & Chan, Felix T.S., 2017. "Robust production capacity planning under uncertain wafer lots transfer probabilities for semiconductor automated material handling systems," European Journal of Operational Research, Elsevier, vol. 261(3), pages 929-940.
    15. Van-Anh Truong & Robin O. Roundy, 2011. "Multidimensional Approximation Algorithms for Capacity-Expansion Problems," Operations Research, INFORMS, vol. 59(2), pages 313-327, April.
    16. Ravi Anupindi & Li Jiang, 2008. "Capacity Investment Under Postponement Strategies, Market Competition, and Demand Uncertainty," Management Science, INFORMS, vol. 54(11), pages 1876-1890, November.
    17. Shabbir Ahmed & Nikolaos V. Sahinidis, 2003. "An Approximation Scheme for Stochastic Integer Programs Arising in Capacity Expansion," Operations Research, INFORMS, vol. 51(3), pages 461-471, June.
    18. Xiaole Wu & Panos Kouvelis & Hirofumi Matsuo, 2013. "Horizontal Capacity Coordination for Risk Management and Flexibility: Pay Ex Ante or Commit a Fraction of Ex Post Demand?," Manufacturing & Service Operations Management, INFORMS, vol. 15(3), pages 458-472, July.
    19. C A Poojari & C Lucas & G Mitra, 2008. "Robust solutions and risk measures for a supply chain planning problem under uncertainty," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 59(1), pages 2-12, January.
    20. Wu, Xiaole & Kouvelis, Panos & Matsuo, Hirofumi & Sano, Hiroki, 2014. "Horizontal coordinating contracts in the semiconductor industry," European Journal of Operational Research, Elsevier, vol. 237(3), pages 887-897.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jomega:v:35:y:2007:i:2:p:237-246. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/375/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.