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Multi-Echelon Assembly Systems with Nonstationary Demands: Heuristics and Worst Case Performance Bounds

Author

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  • Dev Joneja

    (Columbia University, New York, New York)

Abstract

In a multi-echelon assembly system, each production stage has inputs from a number of preceding stages, and supplies at most one succeeding stage. The product of the final stage is used to satisfy external demand in discrete time. There are fixed setup costs and linear inventory holding costs at each stage. The objective is to minimize the cost of operating the system over a finite time horizon. We consider the common case of nonstationary demands, and propose an extremely fast and simple single-pass approximation algorithm for this problem. We prove that in the worst case the performance of the algorithm is uniformly bounded.

Suggested Citation

  • Dev Joneja, 1991. "Multi-Echelon Assembly Systems with Nonstationary Demands: Heuristics and Worst Case Performance Bounds," Operations Research, INFORMS, vol. 39(3), pages 512-518, June.
    • Handle: RePEc:inm:oropre:v:39:y:1991:i:3:p:512-518
    DOI: 10.1287/opre.39.3.512
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    Cited by:

    1. Kimms, Alf & Drexl, Andreas, 1996. "Multi-level lot sizing: A literature survey," Manuskripte aus den Instituten für Betriebswirtschaftslehre der Universität Kiel 405, Christian-Albrechts-Universität zu Kiel, Institut für Betriebswirtschaftslehre.
    2. Awi Federgruen & Michal Tzur, 1999. "Time‐partitioning heuristics: Application to one warehouse, multiitem, multiretailer lot‐sizing problems," Naval Research Logistics (NRL), John Wiley & Sons, vol. 46(5), pages 463-486, August.

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