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An Optimal Decision Model of Production-Inventory with MTS and ATO Hybrid Model Considering Uncertain Demand
Joint Authors
Li, Xia-Miao
Zhang, Dezhi
Li, Shuangyan
Li, Xialian
Qian, Qi
Source
Mathematical Problems in Engineering
Issue
Vol. 2015, Issue 2015 (31 Dec. 2015), pp.1-12, 12 p.
Publisher
Hindawi Publishing Corporation
Publication Date
2015-06-01
Country of Publication
Egypt
No. of Pages
12
Main Subjects
Abstract EN
This paper presents an optimization decision model for a production system that comprises the hybrid make-to-stock/assemble-to-order (MTS/ATO) organization mode with demand uncertainty, which can be described as a two-stage decision model.
In the first decision stage (i.e., before acquiring the actual demand information of the customer), we have studied the optimal quantities of the finished products and components, while in the second stage (i.e., after acquiring the actual demand information of the customer), we have made the optimal decision on the assignment of components to satisfy the remaining demand.
The optimal conditions on production and inventory decision are deduced, as well as the bounds of the total procurement quantity of the components in the ATO phase and final products generated in the MTS phase.
Finally, an example is given to illustrate the above optimal model.
The findings are shown as follows: the hybrid MTS and ATO production system reduces uncertain demand risk by arranging MTS phase and ATO phase reasonably and improves the expected profit of manufacturer; applying the strategy of component commonality can reduce the total inventory level, as well as the risk induced by the lower accurate demand forecasting.
American Psychological Association (APA)
Zhang, Dezhi& Li, Xialian& Li, Xia-Miao& Li, Shuangyan& Qian, Qi. 2015. An Optimal Decision Model of Production-Inventory with MTS and ATO Hybrid Model Considering Uncertain Demand. Mathematical Problems in Engineering،Vol. 2015, no. 2015, pp.1-12.
https://search.emarefa.net/detail/BIM-1073305
Modern Language Association (MLA)
Zhang, Dezhi…[et al.]. An Optimal Decision Model of Production-Inventory with MTS and ATO Hybrid Model Considering Uncertain Demand. Mathematical Problems in Engineering No. 2015 (2015), pp.1-12.
https://search.emarefa.net/detail/BIM-1073305
American Medical Association (AMA)
Zhang, Dezhi& Li, Xialian& Li, Xia-Miao& Li, Shuangyan& Qian, Qi. An Optimal Decision Model of Production-Inventory with MTS and ATO Hybrid Model Considering Uncertain Demand. Mathematical Problems in Engineering. 2015. Vol. 2015, no. 2015, pp.1-12.
https://search.emarefa.net/detail/BIM-1073305
Data Type
Journal Articles
Language
English
Notes
Includes bibliographical references
Record ID
BIM-1073305