Title: Stochastic operational planning model for production and distribution in a hi-tech manufacturing network

Authors: Sandeep Dulluri, N.R. Srinivasa Raghavan

Addresses: Investment Solutions R&D, Global Banking and Markets, Hongkong and Shangai Banking Corporation (HSBC), Bangalore 560 037, India. ' General Motors R&D, India Science Lab., Bangalore, India

Abstract: Hi-tech industries are complex in nature, offering a variety of products, shorter product life-cycles, volatile demand. Hi-tech manufacturers are forced to commit in advance to the customers the amount they can deliver by the specified due-date. In this work, we consider a single manufacturer and multi-assembler supply chain setting with multiple products, multi-period demand, learning rates etc. We develop a stochastic optimisation model, wherein underlying scenarios happen to be Mixed Integer Linear Programs. We solve the stochastic MILPs via by simulation of scenarios. Our focus is mainly on the multi-product ATP strategies that maximise the net profit of the manufacturer.

Keywords: revenue management; multi-product available to promise; cancellation; manufacturing flexibility; lead time flexibility; manufacturing options; logistics options; operational planning; hi-tech manufacturing; simulation; stochastic optimisation; modelling; production planning; distribution planning; high technology; high-tech manufacturing; manufacturing networks.

DOI: 10.1504/IJOR.2009.025006

International Journal of Operational Research, 2009 Vol.5 No.2, pp.163 - 189

Published online: 06 May 2009 *

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