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Modelling customisation in production-inventory systems
Linköping University, Department of Computer and Information Science, EISLAB - Economic Information Systems. Linköping University, The Institute of Technology.
Linköping University, Department of Computer and Information Science, EISLAB - Economic Information Systems. Linköping University, The Institute of Technology.
2004 (English)In: Proceedings of the 2nd World POM Conference, 2004Conference paper, Published paper (Other academic)
Abstract [en]

With the implementation of e-business, customisation is increasingly becoming a competitive strategy for manufacturing companies. From both theoretical and practical perspectives, however, there is limited knowledge about the influence of customisation on the operational level. In this paper, we model two different production systems: the single machine production system with a cyclical production policy and the serial production system with a decoupling point, where customisation is considered. These models provide a theoretical framework for designing a production-inventory system in practice. As for the solutions yielded by the models, the most interesting finding is that capacity requirement increases with customer order lead-time in the serial production system in one of the cases’ solutions, which is counterintuitive. This result is due to the complexity of the relationship between the variables of decoupling point position and capacity requirements and the parameter of customer order leadtime in the mathematical formulation.

Place, publisher, year, edition, pages
2004.
Keyword [en]
e-business, customisation, production-inventory system, capacity requirements, decoupling point, lead-time
National Category
Computer Science
Identifiers
URN: urn:nbn:se:liu:diva-23760Local ID: 3274OAI: oai:DiVA.org:liu-23760DiVA: diva2:244075
Conference
Second World Conference on POM and 15th Annual POM Conference, Cancun, Mexico, April 30 - May 3, 2004
Available from: 2009-10-07 Created: 2009-10-07 Last updated: 2012-12-13
In thesis
1. Capacity-constrained production-inventory systems: modelling and analysis in both a traditional and an e-business context
Open this publication in new window or tab >>Capacity-constrained production-inventory systems: modelling and analysis in both a traditional and an e-business context
2004 (English)Doctoral thesis, comprehensive summary (Other academic)
Abstract [en]

This thesis addresses issues in production-inventory systems in both a traditional and an e-business context, with an emphasis on capacity considerations. The general aim of the thesis is to model capacity-constrained production-inventory systems and thereby provide theoretical frameworks for control as well as design of these systems.

The research has been conducted in two different contexts. In the traditional context, an extensive survey of the literature on capacity-constrained production-inventory systems is first presented. Production-inventory systems with capacity limitations are then modelled using the Laplace transform and input-output analysis for deterministic and stochastic demand situations, respectively. In the formulation of the model for the deterministic demand situations, the focus is on the way in which the fundamental balance equations for inventory and backlogs need to be modified. In the formulation for stochastic demand situations, the model extends previous theory in the direction of capacity considerations combined with uncertainty in external demand. The results of the modelling and analysis in the traditional context contribute to the development of a theoretical background for production-inventory system control applying the Laplace transform approach and input-output analysis.

In the e-business context, those aspects which are affected by e-business based customer ordering systems, and hence influence production-inventory systems, are studied. A mathematical model based on the assumption of a simple e-business model of direct sales channels is presented. Since e-business significantly facilitates customisation, models of two different production systems which consider customisation are provided. The production-inventory systems are then developed into an extended system where customers are included. For this system, a multiple objective formulation is obtained, in view of the importance of customers. The results of the modelling and analysis in the ebusiness context contribute insights and perspectives on ways to design and control ebusiness influenced production - inventory systems.

Place, publisher, year, edition, pages
Linköping, Sweden: Linköpings universitet, 2004. 34 p.
Series
Linköping Studies in Science and Technology. Dissertations, ISSN 0345-7524 ; 889Dissertation from the Swedish Research School of Management and Information Technology (MIT). Dissertation, 2
National Category
Computer Science
Identifiers
urn:nbn:se:liu:diva-23761 (URN)3275 (Local ID)91-8529-508-6 (ISBN)3275 (Archive number)3275 (OAI)
Public defence
2004-11-05, Visionen, Hus B, Campus Valla, Linköping, 10:15 (Swedish)
Available from: 2009-10-07 Created: 2009-10-07 Last updated: 2012-12-13Bibliographically approved

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Wang, ZhipingRapp, Birger

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