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Optimal Capacity Adjustments for Supply Chain Control

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dc.creator Budiman, Benny
dc.date 2003-11-29T20:41:04Z
dc.date 2003-11-29T20:41:04Z
dc.date 2003-01
dc.date.accessioned 2013-10-09T02:32:20Z
dc.date.available 2013-10-09T02:32:20Z
dc.date.issued 2013-10-09
dc.identifier http://hdl.handle.net/1721.1/3750
dc.identifier.uri http://koha.mediu.edu.my:8181/xmlui/handle/1721
dc.description Decisions on capacity are often treated separately from those of production and inventory. In most situations, capacity issues are longer-term, so capacity-related decisions are considered strategic and thus not part of supply planning. This research focuses on optimal supply planning with emphasis on variable capacity to meet uncertain demand. It also defines three levels of capacity change: operating hours, labor availability and production hardware availability. The work presented here deals with the fundamental decisions to determine capacity, production, and inventory to meet customer demand while optimizing revenue and costs over a planning horizon (typically the life of the product). With the Lagrangian technique for constrained optimization, it can be shown that the optimal supply capacity has upper and lower bounds. The optimal feedback policy prescribes increasing the supply capacity when at the beginning of the planning interval it is below the lower bound. Similarly, the supply capacity should be decreased to the upper bound when it is above the upper bound. This paper will present arguments for characterizing forecast evolution and information sharing in the supply chain to obtain a predictor-corrector approach to supply chain control.
dc.description Singapore-MIT Alliance (SMA)
dc.format 366794 bytes
dc.format application/pdf
dc.language en_US
dc.relation Innovation in Manufacturing Systems and Technology (IMST);
dc.subject capacity planning
dc.subject supply chain
dc.subject inventory control
dc.subject optimal control
dc.subject extended enterprise
dc.title Optimal Capacity Adjustments for Supply Chain Control
dc.type Article

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