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Approximate Analysis of Decentralized, Multi-Stage, Pull-Type Production/Inventory Systems

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  • Cigdem Gurgur
  • Tayfur Altiok

Abstract

We consider a decentralized, pull-type manufacturing system with each stage having its own input and output stock keeping activities. Material handling between stages is carried out according to a fixed quantity, non-constant withdrawal cycle. We approximate the system behavior using a two-node decomposition approach, which decomposes the system into smaller subsystems. The analysis of two-node subsystems is achieved using a matrix-recursive approach due to phase-type modeling of certain random variables. Our solution algorithm resolved a major difficulty (due to batch transfers) in the analytical approach to study multi-stage manufacturing systems. We also discuss system behavior and suggest several rules-of-thumb to improve system performance. Copyright Kluwer Academic Publishers 2004

Suggested Citation

  • Cigdem Gurgur & Tayfur Altiok, 2004. "Approximate Analysis of Decentralized, Multi-Stage, Pull-Type Production/Inventory Systems," Annals of Operations Research, Springer, vol. 125(1), pages 95-116, January.
    • Handle: RePEc:spr:annopr:v:125:y:2004:i:1:p:95-116:10.1023/b:anor.0000011187.52502.37
    DOI: 10.1023/B:ANOR.0000011187.52502.37
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    Cited by:

    1. Cigdem Gurgur, 2013. "Optimal configuration of a decentralized, market-driven production/inventory system," Annals of Operations Research, Springer, vol. 209(1), pages 139-157, October.

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