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Uncertainty and Production Planning

In: Planning Production and Inventories in the Extended Enterprise

Author

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  • Stephen C. Graves

    (MIT)

Abstract

The intent of this chapter is to review and discuss how uncertainty is handled in production planning. We describe and critique current practices and then prescribe possible improvements to these practices. In particular, we argue that there are a set of tactical decisions that are critical to the proper handling of uncertainty in production planning. We observe that current planning systems do not provide adequate decision support for these tactical decisions; we regard this shortcoming as an opportunity for new research and development, which could significantly improve the practice of production planning.

Suggested Citation

  • Stephen C. Graves, 2011. "Uncertainty and Production Planning," International Series in Operations Research & Management Science, in: Karl G. Kempf & Pınar Keskinocak & Reha Uzsoy (ed.), Planning Production and Inventories in the Extended Enterprise, chapter 0, pages 83-101, Springer.
    • Handle: RePEc:spr:isochp:978-1-4419-6485-4_5
    DOI: 10.1007/978-1-4419-6485-4_5
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    Citations

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    Cited by:

    1. Sabet, Ehsan & Yazdani, Baback & Kian, Ramez & Galanakis, Kostas, 2020. "A strategic and global manufacturing capacity management optimisation model: A Scenario-based multi-stage stochastic programming approach," Omega, Elsevier, vol. 93(C).
    2. Haeussler, S. & Stampfer, C. & Missbauer, H., 2020. "Comparison of two optimization based order release models with fixed and variable lead times," International Journal of Production Economics, Elsevier, vol. 227(C).
    3. Houda Ghamlouch & Mitra Fouladirad & Antoine Grall, 2019. "The use of real option in condition-based maintenance scheduling for wind turbines with production and deterioration uncertainties," Post-Print hal-02365402, HAL.
    4. Laurent Lim, Lâm & Alpan, Gülgün & Penz, Bernard, 2014. "Reconciling sales and operations management with distant suppliers in the automotive industry: A simulation approach," International Journal of Production Economics, Elsevier, vol. 151(C), pages 20-36.
    5. Garre, Alberto & Ruiz, Mari Carmen & Hontoria, Eloy, 2020. "Application of Machine Learning to support production planning of a food industry in the context of waste generation under uncertainty," Operations Research Perspectives, Elsevier, vol. 7(C).
    6. Xide Zhu & Peijun Guo, 2020. "Bilevel programming approaches to production planning for multiple products with short life cycles," 4OR, Springer, vol. 18(2), pages 151-175, June.
    7. Fahad Kh. A.O.H. Alazemi & Mohd Khairol Anuar Bin Mohd Ariffin & Faizal Bin Mustapha & Eris Elianddy bin Supeni, 2021. "A Comprehensive Fuzzy Decision-Making Method for Minimizing Completion Time in Manufacturing Process in Supply Chains," Mathematics, MDPI, vol. 9(22), pages 1-39, November.
    8. Ghamlouch, Houda & Fouladirad, Mitra & Grall, Antoine, 2019. "The use of real option in condition-based maintenance scheduling for wind turbines with production and deterioration uncertainties," Reliability Engineering and System Safety, Elsevier, vol. 188(C), pages 614-623.
    9. Milne, R. John & Mahapatra, Santosh & Wang, Chi-Tai, 2015. "Optimizing planned lead times for enhancing performance of MRP systems," International Journal of Production Economics, Elsevier, vol. 167(C), pages 220-231.

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