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Production planning for a two-stage production system with multiple parallel machines and variable production rates

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  • Kim, Taebok
  • Glock, Christoph H.

Abstract

This paper studies the case where a manufacturer produces a single type of product on multiple parallel machines. The manufacturer has a machine pool available whose combined production capacity is larger than what is required for producing demand. We assume that the production rates of the machines may be varied within given limits, which gives the manufacturer the opportunity to adjust its total production capacity to demand and to exploit different cost structures of the available machines. In this scenario, the manufacturer has to decide about which machines to select for producing a given demand and how to operate the machines. In addition, the question arises how the product should be shipped to the consumer, given a fixed transportation cost. The paper at hand proposes a deterministic mathematical model for supporting production and distribution planning in this scenario. We analyze the behavior of the proposed model in an extensive numerical experiment using an implementation of the proposed model in a commercial solver.

Suggested Citation

  • Kim, Taebok & Glock, Christoph H., 2018. "Production planning for a two-stage production system with multiple parallel machines and variable production rates," International Journal of Production Economics, Elsevier, vol. 196(C), pages 284-292.
    • Handle: RePEc:eee:proeco:v:196:y:2018:i:c:p:284-292
    DOI: 10.1016/j.ijpe.2017.11.018
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    4. Glock, Christoph H. & Grosse, Eric H., 2021. "The impact of controllable production rates on the performance of inventory systems: A systematic review of the literature," European Journal of Operational Research, Elsevier, vol. 288(3), pages 703-720.
    5. Mridha, Bablu & Sarkar, Biswajit & Cárdenas-Barrón, Leopoldo Eduardo & Ramana, G.V. & Yang, Liu, 2024. "Is the advertisement policy for dual-channel profitable for retailing and consumer service of a retail management system under emissions-controlled flexible production system?," Journal of Retailing and Consumer Services, Elsevier, vol. 78(C).
    6. Raj Kumar Bachar & Shaktipada Bhuniya & Santanu Kumar Ghosh & Biswajit Sarkar, 2022. "Controllable Energy Consumption in a Sustainable Smart Manufacturing Model Considering Superior Service, Flexible Demand, and Partial Outsourcing," Mathematics, MDPI, vol. 10(23), pages 1-29, November.
    7. Herbon, Avi & David, Israel, 2023. "Optimal manufacturer's cost sharing ratio, shipping policy and production rate – A two-echelon supply chain," Operations Research Perspectives, Elsevier, vol. 10(C).

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