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Due Date Assignment for Production Systems

Author

Listed:
  • Abraham Seidmann

    (Texas Tech University)

  • Milton L. Smith

    (Texas Tech University)

Abstract

This paper is concerned with the study of the constant due-date assignment policy in a dynamic job shop. Assuming that production times are randomly distributed, each job has a penalty cost that is some non-linear function of its due-date and its actual completion time. The due date is found by adding a constant to the time the job arrives to the shop. This constant time allowed in the shop is the lead time that a customer might expect between time of placing the order and time of delivery. The objective is to minimize the expected aggregate cost per job subject to restrictive assumptions on the priority discipline and the penalty functions. This aggregate cost includes (1) a cost that increases with increasing lead times, (2) a cost for jobs that are delivered after the due dates: the cost is proportional to tardiness and (3) a cost proportional to earliness for jobs that are completed prior to the due dates. We present an algorithm for solving this problem and show that the optimal lead time is a unique minimum point of strictly convex functions. The algorithm utilizes analytical procedures; computations can be made manually. No specific distributions are assumed; the distribution of total time a job is in the shop is utilized by the algorithm. This distribution can be theoretical or empirical. An example of a production system is presented.

Suggested Citation

  • Abraham Seidmann & Milton L. Smith, 1981. "Due Date Assignment for Production Systems," Management Science, INFORMS, vol. 27(5), pages 571-581, May.
    • Handle: RePEc:inm:ormnsc:v:27:y:1981:i:5:p:571-581
    DOI: 10.1287/mnsc.27.5.571
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    Citations

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    Cited by:

    1. ElHafsi, Mohsen, 2000. "An operational decision model for lead-time and price quotation in congested manufacturing systems," European Journal of Operational Research, Elsevier, vol. 126(2), pages 355-370, October.
    2. Perkgoz, Cahit & Azaron, Amir & Katagiri, Hideki & Kato, Kosuke & Sakawa, Masatoshi, 2007. "A multi-objective lead time control problem in multi-stage assembly systems using genetic algorithms," European Journal of Operational Research, Elsevier, vol. 180(1), pages 292-308, July.
    3. van Ooijen, H. P. G. & Bertrand, J. W. M., 2001. "Economic due-date setting in job-shops based on routing and workload dependent flow time distribution functions," International Journal of Production Economics, Elsevier, vol. 74(1-3), pages 261-268, December.
    4. Robert A. Shumsky, 1998. "Optimal Updating of Forecasts for the Timing of Future Events," Management Science, INFORMS, vol. 44(3), pages 321-335, March.
    5. Dellaert, N. P. & Melo, M. T., 1996. "Stochastic lot-sizing: Solution and heuristic methods," International Journal of Production Economics, Elsevier, vol. 46(1), pages 261-276, December.
    6. Ozturk, Atakan & Kayaligil, Sinan & Ozdemirel, Nur E., 2006. "Manufacturing lead time estimation using data mining," European Journal of Operational Research, Elsevier, vol. 173(2), pages 683-700, September.
    7. Song, D. P. & Hicks, C. & Earl, C. F., 2002. "Product due date assignment for complex assemblies," International Journal of Production Economics, Elsevier, vol. 76(3), pages 243-256, April.
    8. Seçil Savaşaneril & Paul M. Griffin & Pınar Keskinocak, 2010. "Dynamic Lead-Time Quotation for an M/M/1 Base-Stock Inventory Queue," Operations Research, INFORMS, vol. 58(2), pages 383-395, April.
    9. Mark L. Spearman & Rachel Q. Zhang, 1999. "Optimal Lead Time Policies," Management Science, INFORMS, vol. 45(2), pages 290-295, February.
    10. (Van) Enns, S. T., 1995. "An economic approach to job shop performance analysis," International Journal of Production Economics, Elsevier, vol. 38(2-3), pages 117-131, March.
    11. Kedar S. Naphade & S. David Wu & Robert H. Storer & Bhavin J. Doshi, 2001. "Melt Scheduling to Trade Off Material Waste and Shipping Performance," Operations Research, INFORMS, vol. 49(5), pages 629-645, October.
    12. Pinar Keskinocak & R. Ravi & Sridhar Tayur, 2001. "Scheduling and Reliable Lead-Time Quotation for Orders with Availability Intervals and Lead-Time Sensitive Revenues," Management Science, INFORMS, vol. 47(2), pages 264-279, February.
    13. Azaron, Amir & Katagiri, Hideki & Kato, Kosuke & Sakawa, Masatoshi, 2006. "Modelling complex assemblies as a queueing network for lead time control," European Journal of Operational Research, Elsevier, vol. 174(1), pages 150-168, October.
    14. Watanapa, Bunthit & Techanitisawad, Anulark, 2005. "Simultaneous price and due date settings for multiple customer classes," European Journal of Operational Research, Elsevier, vol. 166(2), pages 351-368, October.
    15. Enns, S. T., 1998. "Lead time selection and the behaviour of work flow in job shops," European Journal of Operational Research, Elsevier, vol. 109(1), pages 122-136, August.
    16. Saeed Yaghoubi, 2015. "Due-date assignment for multi-server multi-stage assembly systems," International Journal of Systems Science, Taylor & Francis Journals, vol. 46(7), pages 1246-1256, May.
    17. Azaron, Amir & Fynes, Brian & Modarres, Mohammad, 2011. "Due date assignment in repetitive projects," International Journal of Production Economics, Elsevier, vol. 129(1), pages 79-85, January.
    18. An Pan & Tsan-Ming Choi, 2016. "An agent-based negotiation model on price and delivery date in a fashion supply chain," Annals of Operations Research, Springer, vol. 242(2), pages 529-557, July.

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