IDEAS home Printed from https://ideas.repec.org/a/inm/oropre/v47y1999i1p65-80.html
   My bibliography  Save this article

Design of an Automated Shop Floor Material Handling System with Inventory Considerations

Author

Listed:
  • M. Eric Johnson

    (Vanderbilt University, Nashville, Tennessee)

  • Margaret L. Brandeau

    (Stanford University, Stanford, California)

Abstract

Material handling systems are almost always intertwined with the production system they serve, but problems at this interface are rarely considered together. This paper develops a model that explicitly considers the costs of material handling and inventory to simultaneously design a material handling system and set shop floor inventory policy. The research was inspired by material handling problems we observed at computer manufacturing companies such as Apple Computer and Hewlett Packard Company. Shop floor inventory policies are often a result of trial and error or simple usage calculations—and material handling system design is usually addressed given an existing inventory policy. However, a tradeoff exists between shop floor inventory policy (reorder quantities and safety stock amounts) and demands for material handling. Inventory decisions can have a particularly large impact on cost when an automated material handling system, such as an automated guided vehicle system, is used to deliver materials. This paper develops a material handling/inventory system design model that is a nonlinear mixed integer program with nonlinear constraints, and presents a solution approach based on decomposition. Computational results show that simultaneous consideration of inventory policy and material handling system design can lead to significant reductions in overall production cost.

Suggested Citation

  • M. Eric Johnson & Margaret L. Brandeau, 1999. "Design of an Automated Shop Floor Material Handling System with Inventory Considerations," Operations Research, INFORMS, vol. 47(1), pages 65-80, February.
    • Handle: RePEc:inm:oropre:v:47:y:1999:i:1:p:65-80
    DOI: 10.1287/opre.47.1.65
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1287/opre.47.1.65
    Download Restriction: no
    File URL: https://libkey.io/10.1287/opre.47.1.65?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. M. Eric Johnson & Margaret L. Brandeau, 1996. "Stochastic Modeling for Automated Material Handling System Design and Control," Transportation Science, INFORMS, vol. 30(4), pages 330-350, November.
    2. M. Eric Johnson & Margaret L. Brandeau, 1994. "An Analytic Model for Design and Analysis of Single-Vehicle Asynchronous Material Handling Systems," Transportation Science, INFORMS, vol. 28(4), pages 337-353, November.
    3. George B. Dantzig, 1957. "Discrete-Variable Extremum Problems," Operations Research, INFORMS, vol. 5(2), pages 266-288, April.
    4. Alan J. Rolfe, 1971. "A Note on Marginal Allocation in Multiple-Server Service Systems," Management Science, INFORMS, vol. 17(9), pages 656-658, May.
    5. Arie Harel & Paul H. Zipkin, 1987. "Strong Convexity Results for Queueing Systems," Operations Research, INFORMS, vol. 35(3), pages 405-418, June.
    6. M. E. Dyer & L. G. Proll, 1977. "Note--On the Validity of Marginal Analysis for Allocating Servers in M/M/c Queues," Management Science, INFORMS, vol. 23(9), pages 1019-1022, May.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Vis, Iris F.A., 2006. "Survey of research in the design and control of automated guided vehicle systems," European Journal of Operational Research, Elsevier, vol. 170(3), pages 677-709, May.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Zhang, Xuelu & Wang, Jinting & Do, Tien Van, 2015. "Threshold properties of the M/M/1 queue under T-policy with applications," Applied Mathematics and Computation, Elsevier, vol. 261(C), pages 284-301.
    2. Michelle Opp & Kevin Glazebrook & Vidyadhar G. Kulkarni, 2005. "Outsourcing warranty repairs: Dynamic allocation," Naval Research Logistics (NRL), John Wiley & Sons, vol. 52(5), pages 381-398, August.
    3. Doǧan A. Serel & Erdal Erel, 2008. "Coordination of staffing and pricing decisions in a service firm," Applied Stochastic Models in Business and Industry, John Wiley & Sons, vol. 24(4), pages 307-323, July.
    4. Martello, Silvano & Pisinger, David & Toth, Paolo, 2000. "New trends in exact algorithms for the 0-1 knapsack problem," European Journal of Operational Research, Elsevier, vol. 123(2), pages 325-332, June.
    5. Iida, Hiroshi, 2011. "How to solve the collapsing subset-sum problem revisited," ビジネス創造センターディスカッション・ペーパー (Discussion papers of the Center for Business Creation) 10252/4432, Otaru University of Commerce.
    6. Viet Anh Nguyen & Fan Zhang & Shanshan Wang & Jose Blanchet & Erick Delage & Yinyu Ye, 2021. "Robustifying Conditional Portfolio Decisions via Optimal Transport," Papers 2103.16451, arXiv.org, revised Apr 2024.
    7. O Berman & Z Drezner, 2007. "The multiple server location problem," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 58(1), pages 91-99, January.
    8. Xiuli Chao & Liming Liu & Shaohui Zheng, 2003. "Resource Allocation in Multisite Service Systems with Intersite Customer Flows," Management Science, INFORMS, vol. 49(12), pages 1739-1752, December.
    9. Herweg, Fabian & Müller, Daniel, 2008. "The Optimality of Simple Contracts: Moral Hazard and Loss Aversion," Bonn Econ Discussion Papers 17/2008, University of Bonn, Bonn Graduate School of Economics (BGSE).
    10. Mhand Hifi & Slim Sadfi & Abdelkader Sbihi, 2004. "An Exact Algorithm for the Multiple-choice Multidimensional Knapsack Problem," Post-Print halshs-03322716, HAL.
    11. B. Golany & N. Goldberg & U. Rothblum, 2015. "Allocating multiple defensive resources in a zero-sum game setting," Annals of Operations Research, Springer, vol. 225(1), pages 91-109, February.
    12. Teresa Estañ & Natividad Llorca & Ricardo Martínez & Joaquín Sánchez-Soriano, 2020. "On the difficulty of budget allocation in claims problems with indivisible items of different prices," ThE Papers 20/09, Department of Economic Theory and Economic History of the University of Granada..
    13. Teresa Estañ & Natividad Llorca & Ricardo Martínez & Joaquín Sánchez-Soriano, 2021. "On the Difficulty of Budget Allocation in Claims Problems with Indivisible Items and Prices," Group Decision and Negotiation, Springer, vol. 30(5), pages 1133-1159, October.
    14. Shabtay, Dvir, 2022. "Single-machine scheduling with machine unavailability periods and resource dependent processing times," European Journal of Operational Research, Elsevier, vol. 296(2), pages 423-439.
    15. Jooken, Jorik & Leyman, Pieter & De Causmaecker, Patrick, 2023. "Features for the 0-1 knapsack problem based on inclusionwise maximal solutions," European Journal of Operational Research, Elsevier, vol. 311(1), pages 36-55.
    16. Sbihi, Abdelkader, 2010. "A cooperative local search-based algorithm for the Multiple-Scenario Max-Min Knapsack Problem," European Journal of Operational Research, Elsevier, vol. 202(2), pages 339-346, April.
    17. Christoph Buchheim & Dorothee Henke & Jannik Irmai, 2022. "The Stochastic Bilevel Continuous Knapsack Problem with Uncertain Follower’s Objective," Journal of Optimization Theory and Applications, Springer, vol. 194(2), pages 521-542, August.
    18. Cedric A. Lehmann & Christiane B. Haubitz & Andreas Fügener & Ulrich W. Thonemann, 2022. "The risk of algorithm transparency: How algorithm complexity drives the effects on the use of advice," Production and Operations Management, Production and Operations Management Society, vol. 31(9), pages 3419-3434, September.
    19. Yanhong Feng & Xu Yu & Gai-Ge Wang, 2019. "A Novel Monarch Butterfly Optimization with Global Position Updating Operator for Large-Scale 0-1 Knapsack Problems," Mathematics, MDPI, vol. 7(11), pages 1-31, November.
    20. Taylan İlhan & Seyed M. R. Iravani & Mark S. Daskin, 2011. "TECHNICAL NOTE---The Adaptive Knapsack Problem with Stochastic Rewards," Operations Research, INFORMS, vol. 59(1), pages 242-248, February.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:inm:oropre:v:47:y:1999:i:1:p:65-80. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Asher (email available below). General contact details of provider: https://edirc.repec.org/data/inforea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.