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Variance Effects in Cyclic Production Systems

Author

Listed:
  • Debashish Sarkar

    (AT&T Bell Laboratories, Room 3K332, Crawfords Corner Road, Holmdel, New Jersey 07733-1988)

  • Willard I. Zangwill

    (Graduate School of Business, University of Chicago, 1101 East 58th Street, Chicago, Illinois 60637)

Abstract

Utilizing a cyclic queue system, this paper investigates the effect of variance on a multi-item production facility. The variance of setup time, service rate and arrival rate is shown to have a powerful and sometimes paradoxical influence. Reduction in setup time, for example, is usually presumed to reduce inventory. We demonstrate that inventory can blow up if setup time is cut. Another paradoxical effect of variance is on processing rate. Speeding up the processing rate should reduce the material waiting to be processed. Again we show that the opposite can hold. Other properties of variance are examined, such as its relationship to KAIZEN and Just-In-Time production practices, and especially its property of impairing capacity.

Suggested Citation

  • Debashish Sarkar & Willard I. Zangwill, 1991. "Variance Effects in Cyclic Production Systems," Management Science, INFORMS, vol. 37(4), pages 444-453, April.
    • Handle: RePEc:inm:ormnsc:v:37:y:1991:i:4:p:444-453
    DOI: 10.1287/mnsc.37.4.444
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    Citations

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    Cited by:

    1. Robert B. Cooper & Shun-Chen Niu & Mandyam M. Srinivasan, 1998. "When Does Forced Idle Time Improve Performance in Polling Models?," Management Science, INFORMS, vol. 44(8), pages 1079-1086, August.
    2. Steven J. Erlebacher & Medini R. Singh, 1999. "Optimal Variance Structures and Performance Improvement of Synchronous Assembly Lines," Operations Research, INFORMS, vol. 47(4), pages 601-618, August.
    3. Jodlbauer, Herbert & Reitner, Sonja, 2012. "Optimizing service-level and relevant cost for a stochastic multi-item cyclic production system," International Journal of Production Economics, Elsevier, vol. 136(2), pages 306-317.
    4. Subba Rao, S. & Gunasekaran, A. & Goyal, S. K. & Martikainen, T., 1998. "Waiting line model applications in manufacturing," International Journal of Production Economics, Elsevier, vol. 54(1), pages 1-28, January.
    5. So, Kut C. & Zheng, Xiaona, 2003. "Impact of supplier's lead time and forecast demand updating on retailer's order quantity variability in a two-level supply chain," International Journal of Production Economics, Elsevier, vol. 86(2), pages 169-179, November.
    6. Li, Bo & Arreola-Risa, Antonio, 2017. "Financial risk, inventory decision and process improvement for a firm with random capacity," European Journal of Operational Research, Elsevier, vol. 260(1), pages 183-194.
    7. Mahender P. Singh & Mandyam M. Srinivasan, 2007. "Performance Bounds for Flexible Systems Requiring Setups," Management Science, INFORMS, vol. 53(6), pages 991-1004, June.
    8. David M. Markowitz & Lawrence M. Wein, 2001. "Heavy Traffic Analysis of Dynamic Cyclic Policies: A Unified Treatment of the Single Machine Scheduling Problem," Operations Research, INFORMS, vol. 49(2), pages 246-270, April.
    9. Samaddar, Subhashish, 2001. "The effect of setup time reduction on its variance," Omega, Elsevier, vol. 29(3), pages 243-247, June.
    10. Subhashish Samaddar & Thomas Whalen, 2008. "Improving Performance in Cyclic Production Systems by Using Forced Variable Idle Setup Time," Manufacturing & Service Operations Management, INFORMS, vol. 10(2), pages 173-180, August.
    11. Rappold, James A. & Yoho, Keenan D., 2014. "Setting safety stocks for stable rotation cycle schedules," International Journal of Production Economics, Elsevier, vol. 156(C), pages 146-158.
    12. Samaddar, Subhashish & Hill, Craig A., 2007. "Controlling adverse effect on work in process inventory while reducing machine setup time," European Journal of Operational Research, Elsevier, vol. 180(1), pages 249-261, July.

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