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Identifying potential bottlenecks in production systems using dual prices from a mathematical programming model

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  • Ali Kefeli
  • Reha Uzsoy

Abstract

The importance of identifying bottlenecks in production systems for effective production control and continuous improvement is well recognised. A useful definition of a bottleneck is the station to whose performance the performance of the overall production system is most sensitive. However, obtaining accurate estimates of the impact of changes in a given station's performance on the performance of a production system is often difficult. This paper uses the dual prices associated with production resources in a production planning model to support the identification of bottlenecks as the product mix in the system changes over time. The planning model considers queueing behaviour at production resources using non-linear clearing functions. Relationships between the dual prices of different resources are derived, and the bottleneck information obtained is compared to that from a model that does not consider queueing behaviour.

Suggested Citation

  • Ali Kefeli & Reha Uzsoy, 2016. "Identifying potential bottlenecks in production systems using dual prices from a mathematical programming model," International Journal of Production Research, Taylor & Francis Journals, vol. 54(7), pages 2000-2018, April.
    • Handle: RePEc:taf:tprsxx:v:54:y:2016:i:7:p:2000-2018
    DOI: 10.1080/00207543.2015.1076182
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    References listed on IDEAS

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    1. Srinivasan, A. & Carey, M. & Morton, T.E., 1988. "Resource Pricing And Aggregate Scheduling In Manufacturing Systems," GSIA Working Papers 88-89-58, Carnegie Mellon University, Tepper School of Business.
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    Cited by:

    1. Gopalswamy, Karthick & Uzsoy, Reha, 2021. "Conic programming models for production planning with clearing functions: Formulations and duality," European Journal of Operational Research, Elsevier, vol. 292(3), pages 953-966.

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