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Zero-order production planning models with stochastic demand and workload-dependent lead times

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  • Tarik Aouam
  • Reha Uzsoy

Abstract

We present three different formulations of a simple production planning problem that treat workload-dependent lead times, limited capacity and stochastic demand in an integrated fashion. We compare chance-constrained models, two-stage stochastic programming and robust optimisation using computational experiments. Our results show that the robust optimisation approach is promising, but all the different models face different but challenging issues in addressing this complex problem. We also conclude that successful approximations to this difficult problem with the potential for practical implementation can be developed.

Suggested Citation

  • Tarik Aouam & Reha Uzsoy, 2015. "Zero-order production planning models with stochastic demand and workload-dependent lead times," International Journal of Production Research, Taylor & Francis Journals, vol. 53(6), pages 1661-1679, March.
    • Handle: RePEc:taf:tprsxx:v:53:y:2015:i:6:p:1661-1679
    DOI: 10.1080/00207543.2014.935514
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    Cited by:

    1. Nasreddine Saadouli, 2021. "Stochastic programming model for production planning with stochastic aggregate demand and spreadsheet-based solution heuristics," Operations Research and Decisions, Wroclaw University of Science and Technology, Faculty of Management, vol. 31(4), pages 117-127.
    2. Guhlich, Hendrik & Fleischmann, Moritz & Mönch, Lars & Stolletz, Raik, 2018. "A clearing function based bid-price approach to integrated order acceptance and release decisions," European Journal of Operational Research, Elsevier, vol. 268(1), pages 243-254.

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