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A Single Bottleneck System with Binomial Yields and Rigid Demand

Author

Listed:
  • Abraham Grosfeld-Nir

    (Department of Management Sciences, University of Waterloo, Waterloo, Ontario, Canada N2L 3G1)

  • Boaz Ronen

    (Faculty of Management, The Leon Recanati Graduate School of Business Administration, Tel Aviv University, P.O. Box 39010, Ramat Aviv, Tel Aviv, 69978, Israel)

Abstract

This paper considers a "single bottleneck system": a multistage production system where all setups except one are zero. The stage with nonzero setup is defined to be the bottleneck; it may be thought of as the critical resource whose throughput largely determines the throughput of the entire system, as a envisioned by the OPT philosophy. Production is in lots with uncertain (binomial) yields and demand needs to be satisfied in full, thus possibly necessitating multiple production runs. We show how the optimal control problem can be reduced to that of optimal lotsizing a single stage.

Suggested Citation

  • Abraham Grosfeld-Nir & Boaz Ronen, 1993. "A Single Bottleneck System with Binomial Yields and Rigid Demand," Management Science, INFORMS, vol. 39(5), pages 650-653, May.
    • Handle: RePEc:inm:ormnsc:v:39:y:1993:i:5:p:650-653
    DOI: 10.1287/mnsc.39.5.650
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    Citations

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    Cited by:

    1. Grosfeld-Nir, Abraham, 2005. "A two-bottleneck system with binomial yields and rigid demand," European Journal of Operational Research, Elsevier, vol. 165(1), pages 231-250, August.
    2. Nasr, Walid W. & Jaber, Mohamad Y., 2019. "Supplier development in a two-level lot sizing problem with non-conforming items and learning," International Journal of Production Economics, Elsevier, vol. 216(C), pages 349-363.
    3. Zare, Marjan & Esmaeili, Maryam & He, Yuanjie, 2019. "Implications of risk-sharing strategies on supply chains with multiple retailers and under random yield," International Journal of Production Economics, Elsevier, vol. 216(C), pages 413-424.
    4. Grosfeld-Nir, Abraham & Anily, Shoshana & Ben-Zvi, Tal, 2006. "Lot-sizing two-echelon assembly systems with random yields and rigid demand," European Journal of Operational Research, Elsevier, vol. 173(2), pages 600-616, September.
    5. M-C Wu & L-C Huang & H-M Hsu & T-S Su, 2011. "Multiple lot-sizing decisions in a two-stage production with an interrupted geometric yield and non-rigid demand," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 62(6), pages 1075-1084, June.
    6. Grosfeld-Nir, Abraham, 1995. "Single bottleneck systems with proportional expected yields and rigid demand," European Journal of Operational Research, Elsevier, vol. 80(2), pages 297-307, January.
    7. Grosfeld-Nir, Abraham & Robinson, Lawrence W., 1995. "Production to order on a two machine line with random yields and rigid demand," European Journal of Operational Research, Elsevier, vol. 80(2), pages 264-276, January.
    8. Choi, Sungyong & Jeon, Sumin & Kim, Jinmin & Park, Kwangtae, 2019. "A newsvendor analysis of a binomial yield production process," European Journal of Operational Research, Elsevier, vol. 273(3), pages 983-991.
    9. Wang, Yunzeng & Gerchak, Yigal, 2000. "Input control in a batch production system with lead times, due dates and random yields," European Journal of Operational Research, Elsevier, vol. 126(2), pages 371-385, October.
    10. Nasr, Walid W. & Maddah, Bacel & Salameh, Moueen K., 2013. "EOQ with a correlated binomial supply," International Journal of Production Economics, Elsevier, vol. 144(1), pages 248-255.
    11. Sy-Ming Guu & Chun-Yi Lin, 2018. "The multiple lot sizing problem of a serial production system with interrupted geometric yields, rigid demand and Pentico’s heuristic," Annals of Operations Research, Springer, vol. 269(1), pages 167-183, October.
    12. Abraham Grosfeld-Nir & Yigal Gerchak, 2002. "Multistage Production to Order with Rework Capability," Management Science, INFORMS, vol. 48(5), pages 652-664, May.

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