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  • 1.
    Aguilar Sommar, Ruth
    Linköping University, The Institute of Technology. Linköping University, Department of Production Economics.
    Business process modelling: Review and framework2004In: International Journal of Production Economics, ISSN 0925-5273, E-ISSN 1873-7579, Vol. 90, no 2, p. 129-149Article in journal (Refereed)
    Abstract [en]

    A business process is the combination of a set of activities within an enterprise with a structure describing their logical order and dependence whose objective is to produce a desired result. Business process modelling enables a common understanding and analysis of a business process. A process model can provide a comprehensive understanding of a process. An enterprise can be analysed and integrated through its business processes. Hence the importance of correctly modelling its business processes. Using the right model involves taking into account the purpose of the analysis and, knowledge of the available process modelling techniques and tools. The number of references on business modelling is huge, thus making it very time consuming to get an overview and understand many of the concepts and vocabulary involved. The primary concern of this paper is to make that job easier, i.e. review business process modelling literature and describe the main process modelling techniques. Also a framework for classifying business process-modelling techniques according to their purpose is proposed and discussed. © 2003 Elsevier B.V. All rights reserved.

  • 2.
    Andriolo, Alessandro
    et al.
    University of Padova, Italy.
    Battini, Dania
    University of Padova, Italy.
    Grubbström, Robert W.
    Linköping University, Department of Management and Engineering, Production Economics. Linköping University, The Institute of Technology.
    Persona, Alessandro
    University of Padova, Italy.
    Sgarbossa, Fabio
    University of Padova, Italy.
    A century of evolution from Harriss basic lot size model: Survey and research agenda2014In: International Journal of Production Economics, ISSN 0925-5273, E-ISSN 1873-7579, Vol. 155, p. 16-38Article in journal (Refereed)
    Abstract [en]

    Determining the economic lot size has always represented one of the most important issues in production planning. This problem has long attracted the attention of researchers, and several models have been developed to meet requirements at minimum cost. In this paper we explore and discuss the evolution of these models during one hundred years of history, starting from the basic model developed by Harris in 1913, up to today. Following Harriss work, a number of researchers have devised extensions that incorporate additional considerations. The evolution of EOQ theory strongly reflects the development of industrial systems over the past century. Here we outline all the research areas faced in the past by conducting a holistic analysis of 219 selected journal papers and trying to give a comprehensive view of past work on the EOQ problem. Finally, a new research agenda is proposed and discussed.

  • 3.
    Bao, Xing
    et al.
    Shanghai Jiaotong University.
    Tang, Ou
    Linköping University, The Institute of Technology. Linköping University, Department of Management and Engineering, Production Economics .
    Ji, Jianhua
    Shanghai Jiaotong University.
    Applying Minimum Relative Entropy Method for Bimodal Distribution in a Remanufacturing System2008In: International Journal of Production Economics, ISSN 0925-5273, E-ISSN 1873-7579, Vol. 113, no 2, p. 969-979Article in journal (Refereed)
    Abstract [en]

         

  • 4.
    Bengtsson, Jens
    Linköping University, The Institute of Technology. Linköping University, Department of Production Economics.
    Manufacturing flexibility and real options: A review2001In: International Journal of Production Economics, ISSN 0925-5273, E-ISSN 1873-7579, Vol. 74, no 1-3, p. 213-224Article, review/survey (Refereed)
    Abstract [en]

    This paper considers manufacturing flexibility and real options from an industrial engineering/production management perspective. Real options papers are related to different types of manufacturing flexibility in order to show which types that are considered and in what way they are considered. Flexibility types not valued with real options and real options without any corresponding manufacturing flexibility type are identified and discussed. © 2001 Elsevier Science B.V. All rights reserved.

  • 5.
    Bengtsson, Jens
    et al.
    Linköping University, The Institute of Technology. Linköping University, Department of Production Economics.
    Olhager, Jan
    Linköping University, The Institute of Technology. Linköping University, Department of Production Economics.
    Valuation of product-mix flexibility using real options2002In: International Journal of Production Economics, ISSN 0925-5273, E-ISSN 1873-7579, Vol. 78, no 1, p. 13-28Article in journal (Refereed)
    Abstract [en]

    Flexibility in manufacturing operations is becoming increasingly more important to industrial firms, due to e.g., increasing market demand volatility, internationalisation of markets and competition, and shorter product life cycles. Defining, measuring and evaluating manufacturing flexibility have not been straightforward - neither in theory nor in practice. The use of real options has shown to be an accessible approach for the valuation of certain types of flexibility. When using real options for capital budgeting purposes it is possible to take flexibility options into account in the valuation process. In this paper, we use real options to evaluate one specific type of manufacturing flexibility, i.e., product-mix flexibility. We provide both theoretical and practical perspectives, based on a real case. The main interest of the company under study is to evaluate product-mix flexibility with respect to capacity, set-ups, level of automation and multi-functionality of resources. The case involves multiple products and demand uncertainty, wherefore product demands are used as the underlying asset in the real options models. Thus, the contribution of this paper concerns the combination of real case, multiple products, capacity constraints, and set-up costs. The results of the analysis show that (i) the value of flexibility decreases when demand volatility increases, (ii) flexible resources add substantial value as compared to dedicated resources, and (iii) the flexibility value of marginal capacity decreases with increasing levels of capacity.

  • 6.
    Berglund, Martina
    et al.
    Linköping University, Department of Management and Engineering, Quality Technology and Management. Linköping University, The Institute of Technology.
    Karltun, Johan
    Tekniska Högskolan i Jönköping.
    Human, technological and organizational aspects influencing the production scheduling process2007In: International Journal of Production Economics, ISSN 0925-5273, E-ISSN 1873-7579, Vol. 110, no 1-2, p. 160-174Article in journal (Refereed)
    Abstract [en]

    This study of scheduling work in practice addresses how the production-scheduling processes in four companies are influenced by human, technological, and organizational aspects. A conclusion is that the outcome of the scheduling process is influenced by the scheduler adding human capabilities that cannot be automated, by technical constraints in the scheduled production system and by the available scheduling software tools. Furthermore, the outcome is influenced not only by how the scheduling process is formally organized, but also by the scheduler's informal authority and the role taken to interconnect activities between different organizational groups. The findings from the study support a number of previous studies done on scheduling in practice whilst giving new insights into their interpretation.

  • 7.
    Bogataj, Marija
    et al.
    University of Ljubljana, Slovenia Mediterranean Institute Adv Studies, Slovenia .
    Grubbström, Robert W
    Linköping University, Department of Management and Engineering, Production Economics. Linköping University, The Institute of Technology.
    On the representation of timing for different structures within MRP theory2012In: International Journal of Production Economics, ISSN 0925-5273, E-ISSN 1873-7579, Vol. 140, no 2, p. 749-755Article in journal (Refereed)
    Abstract [en]

    MRP Theory has been developed during the last 25 years for capturing processes concerning multi-level, multi-stage production-inventory systems in a compact way. Input-output analysis has been used to describe structures, and Laplace transforms to describe the timing relations. This theory has mainly dealt with assembly systems, in which each item has only one successor. The lead times for the assembly of an item have usually been constants and equal for all items entering a given successor. For such systems, the equations describing the flows of components may be written to include the generalised input matrix as the product of an input matrix containing needed amounts, and a diagonal lead time matrix with lead time operators along its main diagonal. less thanbrgreater than less thanbrgreater thanOn occasion, there has been a need to deviate from this representation enabling lead times to vary depending on which input item that is considered. This paper deals with how to represent lead times and similar output delays (in diverging, arborescent systems), when the assumption of equal times is relaxed, in order to retain the basic structure of the fundamental balance equations involved. The intention of this paper is to create a general taxonomy for the representation of timing in algebraic form for a variety of systems covering both assembly systems and arborescent systems (such as extraction, distribution and remanufacturing), as well as systems with mixed properties. For instance, this method may be used directly for the evaluation of investments in capacity or in the location of activities in a production network, or even in a global supply chain.

  • 8.
    Bogataj, Marija
    et al.
    University of Ljubljana, Slovenia MEDIFAS, Slovenia .
    Grubbström, Robert W.
    Linköping University, Department of Management and Engineering, Production Economics. Linköping University, The Institute of Technology.
    Transportation delays in reverse logistics2013In: International Journal of Production Economics, ISSN 0925-5273, E-ISSN 1873-7579, Vol. 143, no 2, p. 395-402Article in journal (Refereed)
    Abstract [en]

    In this paper we extend and apply MRP theory towards reverse logistics including the considerations of transportation consequences. Our aim is to demonstrate the versatility obtained from using MRP theory when combining Input-Output Analysis and Laplace transforms. This enables an analysis of a supply chain including four sub-systems, namely manufacturing, distribution, consumption and reverse logistics, where the geographical distance between the activities play an important role. The main focus in this paper is on reverse logistics (recycling, remanufacturing). Especially we wish to model the evaluation of disposal and reverse activities far away from agglomerations, which often means an improved environment for nearby inhabitants. This is also illustrated in a numerical example. We use the Net Present Value as a measure of the economic performance. Our ambition is to show that supply chain sub-systems may accurately be described using input and output matrices collected together in corresponding matrices for the system as a whole. Activity levels in each sub-system govern the speed of the respective processes, and these activity levels, in general, will be considered as decision variables. We now analyse reverse logistics activities in which the flows of materials and goods are typically divergent (arborescent processes), similar to properties of the distribution sub-system, and recent results on the extensions of basic MRP theory introducing the concepts of output delays and the generalised output matrix are also introduced here, when modelling the reverse logistics sub-system.

  • 9.
    Bogataj, Marija
    et al.
    University of Ljubljana, Slovenia.
    Grubbström, Robert W.
    Linköping University, Department of Management and Engineering, Production Economics. Linköping University, The Institute of Technology. Mediterranean Institute for Advanced Studies, Sempeter pri Gorici, Slovenia.
    Bogataj, Ludvik
    University of Ljubljana, Slovenia.
    Efficient location of industrial activity cells in a global supply chain2011In: International Journal of Production Economics, ISSN 0925-5273, E-ISSN 1873-7579, Vol. 133, no 1, p. 243-250Article in journal (Refereed)
    Abstract [en]

    Inefficient locations for production, distribution and reverse logistics plants will result in excess costs no matter how well material requirements planning (MRP), inventory control, distribution and information sharing decisions are optimized. In this paper we study ways in which aspect of activity cell location decisions can be analyzed within an extended MRP model. This model has previously been extended by including distribution and reverse logistics components in a compact form, presented in Grubbstrom et al. (2007). Our aim is to demonstrate the basic differences between an approach to location problems with MRP "under the same roof" as the global supply chain, in which transportation time delays and direct transportation costs have substantial influence. We discuss possibilities of how to present location aspects in the supply chain model obtained from combining input-output analysis and Laplace transforms in four sub-systems, namely manufacturing, distribution, consumption and reverse logistics, and show how the transportation costs and lead time influenced by the location of all these activities affect the resulting net present value (NPV). Our aim is to build a model supporting decisions concerning the structure of a supply chain as an alternative to a mixed integer programming formulation. The model developed is based on the use of continuous functions describing spatial distributions of cost and customer demand. Continuous functions are embedded in the MRP extension previously introduced in Grubbstrom et al. (2007). Location decisions influence (i) production costs, because timing influences the cost of activities involved in creating a product, cf. (Grubbstrom and Bogataj, submitted for publication), and (ii) logistics costs, which refer to the procurement and physical transmission of materials through the supply chain. In this current paper we wish to combine both of these aspects into a comprehensive model, where we show the interaction between the "space of flows" and the "space of places" as Giovanni Arrighi distinguishes one from the other in his book The Long Twentieth Century.

  • 10.
    Chen, Lujie
    et al.
    Linköping University, Department of Management and Engineering, Production Economics. Linköping University, The Institute of Technology.
    Feldmann, Andreas
    Department of Industrial Economics and Management, Royal Institute of Technology.
    Tang, Ou
    Linköping University, Department of Management and Engineering, Production Economics. Linköping University, The Institute of Technology.
    The relationship between disclosures of corporate social performance and financial performance: Evidences from GRI reports in manufacturing industry2015In: International Journal of Production Economics, ISSN 0925-5273, E-ISSN 1873-7579, Vol. 170, p. 445-456Article in journal (Refereed)
    Abstract [en]

    Whether the corporate social performance affects the financial performance is still unclear in many manufacturing companies. We commonly expect, on one side, that profitable corporations have stronger incentives to reveal information on social performance in order to improve their publicity; on the other hand, companies may face the fear of rising costs due to Corporate Social Responsibility (CSR) activities. With increasing concerns of CSR, it is timely to investigate the relationship between the disclosure of corporate social performance and financial performance. In this paper with the above study objective, we use Global Reporting Initiative (GRI) reports of 75 sample companies, collect evidences by applying the method of structured content analysis of the cases and attempt to identify this relationship. The corporate social performance is measured by the indicators according to the GRI guidelines, i.e. within the categories of Labor practices and decent work, Human Rights, Society as well as Product responsibility. Financial performance is measured by return on equity, sales growth and cash flow/sales ratio. Using statistical evaluation methods, our results indicate that the categories of Human Rights, Society as well as Product responsibility display a significant and positive correlation with the return on equity. Same conclusion also holds for many CSR indicators. Nevertheless, when examining the CSR practices across different manufacturing sectors, we have not observed significant differences. The study results are important for understanding the development and implementation of CSR practices in the manufacturing industry.

  • 11.
    Chen, Lujie
    et al.
    Linköping University, Department of Management and Engineering, Production Economics. Linköping University, The Institute of Technology.
    Olhager, Jan
    Industrial Management and Logistics, Lund University.
    Tang, Ou
    Linköping University, Department of Management and Engineering, Production Economics. Linköping University, The Institute of Technology.
    Manufacturing facility location and sustainability: A literature review and research agenda2014In: International Journal of Production Economics, ISSN 0925-5273, E-ISSN 1873-7579, Vol. 149, p. 154-163Article in journal (Refereed)
    Abstract [en]

    The perspectives on the manufacturing footprint of global firms are widening from the economic aspects to also include the environmental and social aspects. Thus, sustainability is becoming an important issue for the location of manufacturing facilities. It is therefore timely to review the relevant aspects and dimensions in the extant literature to investigate the relationship between sustainability and facility location. In this paper, we aim to understand how sustainability aspects are included in decision-making concerning manufacturing facility locations and the role of location in evaluating manufacturing sustainability. We examine the literature streams on sustainability and facility location. A comprehensive search includes peer-reviewed literature from 1990 to 2011. We propose a literature classification scheme with respect to focal area and research methodology. The content analysis identifies the environmental, social and economic perspectives and factors affecting location decisions. We synthesize the findings into a framework for taking sustainability aspects into account in manufacturing facility location decision-making. We also propose a research agenda for further research on sustainable locations.

  • 12.
    Chen, Lujie
    et al.
    CEIBS, Peoples R China.
    Zhao, Xiande
    CEIBS, Peoples R China.
    Tang, Ou
    Linköping University, Department of Management and Engineering, Production Economics. Linköping University, Faculty of Science & Engineering.
    Price, Lydia
    CEIBS, Peoples R China.
    Zhang, Shanshan
    South China University of Technology, Peoples R China.
    Zhu, Wenwen
    South China University of Technology, Peoples R China.
    Supply chain collaboration for sustainability: A literature review and future research agenda2017In: International Journal of Production Economics, ISSN 0925-5273, E-ISSN 1873-7579, Vol. 194, p. 73-87Article, review/survey (Refereed)
    Abstract [en]

    New technology is altering business strategies and innovation capabilities while increasing the possibilities of production and process innovation. Supply chain collaboration undertaken for the sake of sustainability is currently speeding up this process of change; a growing pool of research is exploring the links between sustainability collaboration and company performance on economic, environmental, and social metrics. It is a good time to review the literature to reveal what has been studied and what are the gaps in the current body of knowledge, and also to comment on what the future research agenda should include. For these purposes, the authors conducted a systematic literature review and a quantitative bibliometric analysis. Results indicate that research about supply chain collaboration for the purpose of sustainability is gaining growing attention in the business field; however, environmental and economic considerations still dominate the research, while there is a lack of consideration about social concerns such as child labor and personal development. In addition, the collaboration partners under investigation have mainly been the company and its customers and suppliers, whereas competitors and other horizontal collaboration partners have received little attention.

  • 13.
    Ding, Huiping
    et al.
    Beijing Jiaotong University, Peoples R China.
    Zhao, Qilan
    Beijing Jiaotong University, Peoples R China.
    An, Zhirong
    Beijing Jiaotong University, Peoples R China.
    Tang, Ou
    Linköping University, Department of Management and Engineering, Production Economics. Linköping University, Faculty of Science & Engineering.
    Collaborative mechanism of a sustainable supply chain with environmental constraints and carbon caps2016In: International Journal of Production Economics, ISSN 0925-5273, E-ISSN 1873-7579, Vol. 181, p. 191-207Article in journal (Refereed)
    Abstract [en]

    Negative impacts on environment such as carbon emissions and pollution resulting from the business activities of firms in a supply chain have attracted great attention worldwide. Hence, one of the crucial issues for supply chain management is the trade-off between economic objectives and environmental sustainability. This paper focuses on investigating the government policy incentive mechanism, with which supply chain members are motivated to work collaboratively to reduce carbon and pollutant emissions by investing in producing environmental-friendly products (EFP). Such a mechanism affects the transfer price through negotiation between the supply chain firms, and consequently it has an impact on the supply chains value transition and profit allocation. A collaborative supply chain decision-making framework is formulated with environmental constraints and carbon caps; its objective is to maximize the net present value of an integrated supply chain as well as satisfy the interests of its individual members. Our key contribution lies in exploring a decision-making mechanism for an environmentally sustainable supply chain that is jointly constrained by environmental carrying capacities and carbon caps, and also takes into account government policy incentives. The results show that collaboration between supply chain members plays a crucial role in improving their environmental performance, as the transfer price is determined through negotiations to share government subsidies to satisfy the individual interests of supply chain members while the level of pollutants and carbon emissions are in compliance with environmental standards.(C) 2016 Elsevier B.V. All rights reserved.

  • 14.
    Disney, Stephen M
    et al.
    Cardiff University, Wales .
    Bogataj, Marija
    MEDIFAS, Slovakia University of Ljubljana, Slovenia .
    Tang, Ou
    Linköping University, Department of Management and Engineering, Production Economics. Linköping University, The Institute of Technology.
    Editorial Material: Sixteenth international working seminar on production economics, Innsbruck, 20102012In: International Journal of Production Economics, ISSN 0925-5273, E-ISSN 1873-7579, Vol. 140, no 2, p. 557-558Article in journal (Other academic)
    Abstract [en]

    n/a

  • 15.
    Gebauer, Heiko
    et al.
    Linköping University, Department of Management and Engineering, Business Administration. Linköping University, Faculty of Arts and Sciences. Eawag Environm Social Science Business Innovat Sustai, Switzerland; Karlstad University, Sweden.
    Jennings Saul, Caroline
    Eawag Environm Social Science Business Innovat Sustai, Switzerland.
    Haldimann, Mirella
    Eawag Environm Social Science Business Innovat Sustai, Switzerland.
    Gustafsson, Anders
    Karlstad University, Sweden.
    Organizational capabilities for pay-per-use services in product-oriented companies2017In: International Journal of Production Economics, ISSN 0925-5273, E-ISSN 1873-7579, Vol. 192, p. 157-168Article in journal (Refereed)
    Abstract [en]

    Pay-per-use services are an interesting phenomenon, both empirically and theoretically. Despite the alleged benefits, companies still struggle to succeed with pay-per-use services. Theoretically, it is common sense that existing service capabilities cannot easily be converted into organizational capabilities for pay-per-use services. Based on multiple case studies, the present article narrows down the existing empirical and theoretical gaps through an inductive research approach. Our findings make the following contributions to the field of services in product-oriented companies and to the servitization literature. We describe the organizational capabilities necessary for pay-per-use services (e.g., financing such services, aligning costs with equipment usage, and collaborating with customers). We reveal that companies should convert these capabilities into three core competencies (strategizing pay-per-use services, utilizing technologies for pay-per-use services, and de-risking pay-per-use services), in order to achieve competitive advantages.

  • 16.
    Grubbström, Robert
    Linköping University, Department of Management and Engineering, Production Economics. Linköping University, The Institute of Technology.
    Cumulative staircase considerations for dynamic lotsizing when backlogging is allowed2014In: International Journal of Production Economics, ISSN 0925-5273, E-ISSN 1873-7579, Vol. 157, p. 201-211Article in journal (Refereed)
    Abstract [en]

    The dynamic lotsizing problem concerns the determination of optimal batch quantities, when given required amounts appear at discrete points in time. The standard formulation assumes that no shortages are allowed and that replenishments are made instantaneously.

    For the case when no shortage is allowed, previously it has been demonstrated that the inner-corner condition for an optimal production plan in continuous time reduces the number of possible replenishment times to a finite set of given points at which either a replenishment is made, or not. The problem is thus turned into choosing from a set of zero/one decisions with 2n−1 alternatives, of which at least one solution must be optimal, where n is the number of requirement events. Recently, the instantaneous replenishment assumption has been replaced by allowing for a finite production rate, which turned the inner-corner condition into a condition of tangency between the cumulative demand staircase and cumulative production.

    In this paper we investigate relationships between optimal cumulative production and cumulative demand, when backlogging is permitted. The production rate is assumed constant and cumulative production will then be a set of consecutive ramps. Cumulative demand is a given staircase function. The net present value (NPV) principle is applied, assuming a fixed setup cost for each ramp, a unit production cost for each item produced and a unit revenue for each item sold at the time it is delivered.

    Among other results, it is shown that optimal cumulative production necessarily intersects the demand staircase. Instead of having 2n−1 production staircases as candidates for optimality, there are 2n−1 production structures as candidates. These are made up of sequences of batches, of which the set of batches may be optimised individually. Also is shown that the NPV of each batch has a unique timing maximum and behaves initially in a concave way and ends as convex.

    Results for the average cost approach are obtained from a zeroth/first order approximation of the objective function (NPV).

  • 17.
    Grubbström, Robert
    Linköping University, Department of Management and Engineering, Production Economics. Linköping University, The Institute of Technology.
    Dynamic lotsizing with a finite production rate2014In: International Journal of Production Economics, ISSN 0925-5273, E-ISSN 1873-7579, Vol. 149, p. 68-79Article in journal (Refereed)
    Abstract [en]

    The dynamic lotsizing problem concerns the determination of optimally produced/delivered batch quantities, when demand, which is to be satisfied, is distributed over time in different amounts at different times. The standard formulation assumes that these batches are provided instantaneously, i.e. that the production rate is infinite.

    Using a cumulative geometrical representation for demand and production, it has previously been demonstrated that the inner-corner condition for an optimal production plan reduces the number of possible optimal replenishment times to a finite set of given points, at which replenishments can be made. The problem is thereby turned into choosing from a set of zero/one decisions, whether or not to replenish each time there is a demand. If n is the number of demand events, this provides 2n−1 alternatives, of which at least one solution must be optimal. This condition applies, whether an Average Cost approach or the Net Present Value principle is applied, and the condition is valid in continuous time, and therefore in discrete time.

    In the current paper, the assumption of an infinite production rate is relaxed, and consequences for the inner-corner condition are investigated. It is then shown that the inner-corner condition needs to be modified to a tangency condition between cumulative requirements and cumulative production.

    Also, we have confirmed the additional restriction for feasibility in the finite production case (provided by Hill, 1997), namely the production rate restriction. Furthermore, in the NPV case, one further necessary condition for optimality, the distance restriction concerning the proximity between adjacent production intervals, has been derived. In an example this condition has shown to reduce the number of candidate solutions for optimality still further. An algorithm leading to the optimal solution is presented.

  • 18.
    Grubbström, Robert W
    Linköping University, Department of Management and Engineering, Production Economics. Linköping University, Faculty of Science & Engineering. Mediterranean Institute Adv Studies, Slovenia.
    On the true value of resource consumption when using energy in industrial and other processes2015In: International Journal of Production Economics, ISSN 0925-5273, E-ISSN 1873-7579, Vol. 170, p. 377-384Article in journal (Refereed)
    Abstract [en]

    In this paper we attempt to provide a partial answer to the question of why energy is a scarce resource. Scarcity is a fundamental concept in the science of economics. If resources, goods or services were not in scarce supply, we need not economise when utilising them. Indeed, free commodities we need not pay for, their prices are zero, we attach no economic value to them, and their supply is in abundance - at least beyond the point at which our needs and wants are satisfied. However, energy is regarded as a scarce resource, although energy - as such - is not scarce. To describe energy as a useful and therefore a valuable quantity, to which a price may be attached, energy will thus have to be characterised in further dimensions than energy content alone. Apart from quantity, there is a need for a uniform qualitative measure of energy. The obvious field to revert to for such considerations is thermodynamics, which offers a method for defining a uniform measure for the qualitative content of energy, namely exergy. Although exergy is defined from purely physical properties, it is shown to have an important role to play when comparing the economic value of energy in different forms. In particular, this paper will focus on the economic value of heat, especially heat delivered through a district heating system. The concept of exergy is defined from maximising a work output reversibly taking an infinite time. However, for processes to run within finite horizons, entropy must be generated. This leads us to add finite time considerations from examining consequences from the assumed availability of so-called endo-reversible processes. In a small case example we show that heat appears to be overpriced compared to electricity from an exergetic point of view and that this is even more pronounced adopting finite time considerations. (C) 2015 Elsevier B.V. All rights reserved.

  • 19.
    Grubbström, Robert W.
    et al.
    Linköping University, Department of Management and Engineering. Linköping University, The Institute of Technology.
    Hinterhuber, Hans H
    Department of Management, University of Innsbruck, Innsbruck, Austria.
    Developments in Production Economics2009In: International Journal of Production Economics, ISSN 0925-5273, E-ISSN 1873-7579, Vol. 121, no 2, p. 299-300Article in journal (Other academic)
    Abstract [en]

    n/a

  • 20.
    Grubbström, Robert W.
    et al.
    Linköping University, Department of Management and Engineering, Production Economics. Linköping University, The Institute of Technology.
    Hinterhuber, Hans H.
    Innsbruck University School of Management, Austria.
    Editorial2006In: International Journal of Production Economics, ISSN 0925-5273, E-ISSN 1873-7579, Vol. 104, no 1, p. 1-2Article in journal (Other academic)
  • 21.
    Grubbström, Robert W.
    et al.
    Linköping University, Department of Management and Engineering, Production Economics. Linköping University, The Institute of Technology.
    Hinterhuber, Hans H.
    University of Innsbruck.
    Editorial2004In: International Journal of Production Economics, ISSN 0925-5273, E-ISSN 1873-7579, Vol. 89Article in journal (Refereed)
  • 22.
    Grubbström, Robert W.
    et al.
    Linköping University, Department of Management and Engineering, Production Economics. Linköping University, The Institute of Technology.
    Hinterhuber, Hans H.
    University of Innsbruck.
    Igls 20002002In: International Journal of Production Economics, ISSN 0925-5273, E-ISSN 1873-7579, Vol. 77, no 3, p. 189-190Article in journal (Other academic)
    Abstract [en]

    [No abstract available]

  • 23.
    Grubbström, Robert W.
    et al.
    Linköping University, Department of Management and Engineering, Production Economics. Linköping University, The Institute of Technology.
    Hinterhuber, Hans H.
    Universität Innsbruck.
    Strategic Issues And Innovation In Production Economics - Editorial2006In: International Journal of Production Economics, ISSN 0925-5273, E-ISSN 1873-7579, Vol. 104, no 1, p. 1-2Article in journal (Other academic)
  • 24.
    Grubbström, Robert W.
    et al.
    Linköping University, Department of Management and Engineering, Production Economics. Linköping University, The Institute of Technology.
    Hinterhuber, Hans H.
    University of Innsbruck.
    Suppy Chain Management - Editorial2004In: International Journal of Production Economics, ISSN 0925-5273, E-ISSN 1873-7579, Vol. 89, no 2, p. 5-6Article in journal (Other academic)
  • 25.
    Grubbström, Robert W.
    et al.
    Linköping University, Department of Management and Engineering. Linköping University, The Institute of Technology.
    Hinterhuber, Hans H.
    University of Innsbruck, Innsbruck, Austria.
    Tang, Ou
    Linköping University, Department of Management and Engineering, Production Economics. Linköping University, The Institute of Technology.
    Innsbruck 20082011In: International Journal of Production Economics, ISSN 0925-5273, E-ISSN 1873-7579, Vol. 131, no 1, p. 1-3Article in journal (Other academic)
  • 26.
    Grubbström, Robert W.
    et al.
    Linköping University, Department of Management and Engineering, Production Economics. Linköping University, The Institute of Technology.
    Huynh, Thuy
    Linköping University, The Institute of Technology. Linköping University, Department of Production Economics.
    Multi-level, multi-stage capacity-constrained production-inventory systems in discrete time with non-zero lead times using MRP theory2006In: International Journal of Production Economics, ISSN 0925-5273, E-ISSN 1873-7579, Vol. 101, no 1 SPEC. ISS., p. 53-62Article in journal (Refereed)
    Abstract [en]

    A substantial amount of research has been carried out on capacity-constrained production-inventory systems. This has mostly dealt with models assuming deterministic demand and single-item systems. In previous work, one of the authors together with a co-researcher designed a basic theoretical model for systems with multiple items and stochastic external demand. These developments were presented within a discrete time framework. Lead times were assumed to be given constants and the net present value principle was applied. Although the theory developed concerned situations in which the lead times could be any non-zero constants, in order to design an analytical solution procedure, the assumption was made that lead times were zero, in order to be able to apply dynamic programming. Cumulative production and cumulative demand were taken as state variables. In this paper, we remain in the discrete time framework and develop a methodology for the case that lead times are non-zero, whereas demand is deterministic. Our emphasis is on the design of the state space, the properties of which depend on the product structures (the input matrix), the distribution of lead times among the production processes (the lead time matrix), and on the historical sequences of the production vectors. Once an efficient state space is designed, dynamic programming may be applied as a solution method. The net present value principle is again applied. © 2005 Elsevier B.V. All rights reserved.

  • 27.
    Grubbström, Robert W.
    et al.
    Linköping University, Department of Management and Engineering, Production Economics. Linköping University, The Institute of Technology.
    Tang, Ou
    Linköping University, Department of Management and Engineering, Production Economics. Linköping University, The Institute of Technology.
    Further Developments on Safety Stocks in an MRP System Applying Laplace Transforms and Input-Output Analysis1999In: International Journal of Production Economics, ISSN 0925-5273, E-ISSN 1873-7579, Vol. 60-61, p. 381-387Article in journal (Refereed)
    Abstract [en]

    In a sequence of previous papers, the Laplace transform and Input–Output Analysis have been applied to formulate a theoretical basis for material requirements planning (MRP) under different levels of generalisation. Searching for the optimal safety stock is one of the extensions of this theory. This paper investigates the safety stock properties in the case that the time interval of demand is Gamma-distributed. The Generalised Leontief inverse plays an effective role in describing the multi-level production–inventory system when the subordinate products are produced according to a lot-for-lot (L4L) policy.

  • 28.
    Grubbström, Robert W.
    et al.
    Linköping University, Department of Management and Engineering, Production Economics. Linköping University, The Institute of Technology.
    Tang, Ou
    Linköping University, Department of Management and Engineering, Production Economics. Linköping University, The Institute of Technology.
    Modelling Rescheduling Activities in a Multi-Period Production-Inventory System2000In: International Journal of Production Economics, ISSN 0925-5273, E-ISSN 1873-7579, Vol. 68, no 2, p. 123-135Article in journal (Refereed)
    Abstract [en]

    Decisions for planning production activities for multi-period production–inventory systems have been studied in a number of papers applying input–output analysis and the Laplace transform. The decisions have concerned activities spread out over time without having the opportunity to adjust future decisions when the external and/or internal circumstances change. In this paper, we extend the analysis to situations when rescheduling is possible. Firstly, different classes of causes justifying rescheduling activities are presented including periodic rescheduling and “net change”. Secondly, in terms of previously developed theory, we model the behaviour of a simple single-level production–inventory system for which its production plan may be modified at one point in the future.

  • 29.
    Grubbström, Robert W
    et al.
    Linköping University, Department of Management and Engineering, Production Economics. Linköping University, The Institute of Technology.
    Tang, Ou
    Linköping University, Department of Management and Engineering, Production Economics. Linköping University, The Institute of Technology.
    The space of solution alternatives in the optimal lotsizing problem for general assembly systems applying MRP theory2012In: International Journal of Production Economics, ISSN 0925-5273, E-ISSN 1873-7579, Vol. 140, no 2, p. 765-777Article in journal (Refereed)
    Abstract [en]

    MRP Theory combines the use of Input-Output Analysis and Laplace transforms, enabling the development of a theoretical background for multi-level, multi-stage production-inventory systems together with their economic evaluation, in particular applying the Net Present Value principle (NPV). less thanbrgreater than less thanbrgreater thanIn a recent paper (Grubbstrom et al., 2010), a general method for solving the dynamic lotsizing problem for a general assembly system was presented. It was shown there that the optimal production (completion) times had to be chosen from the set of times generated by the Lot-For-Lot (L4L) solution. Thereby, the problem could be stated in binary form by which the values of the binary decision variables represented either to make a production batch, or not, at each such time. Based on these potential times for production, the problem of maximising the Net Present Value or minimising the average cost could be solved, applying a single-item optimal dynamic lotsizing method, such as the Wagner-Whitin algorithm or the Triple Algorithm, combined with dynamic programming. less thanbrgreater than less thanbrgreater thanThis current paper follows up the former paper by investigating the complexity defined as the number of possible feasible solutions (production plans) to compare. We therefore investigate how properties of external demand timing and properties of requirements (Bill-of-Materials) have consequences on the size of this solution space. Explicit expressions are developed for how the total number of feasible production plans depends on numbers of external demand events on different levels for, in particular, the two extreme cases of a serial system and a full system (the latter, in which items have requirements of all existing types of subordinate items). A formula is also suggested for general systems falling in between these two extremes. For the most complex full system, it is shown that the number of feasible plans will be the product of elements taken from Sylvesters sequence (an instance of doubly exponential sequences) raised to powers depending on numbers of external demand events.

  • 30.
    Grubbström, Robert W.
    et al.
    Linköping University, Department of Production Economics. Linköping University, The Institute of Technology.
    Wang, Zhiping
    Linköping University, Department of Production Economics. Linköping University, The Institute of Technology.
    A stochastic model of multi-level/multi-stage capacity-constrained production–inventory systems2003In: International Journal of Production Economics, ISSN 0925-5273, E-ISSN 1873-7579, Vol. 81-82, p. 483-494Article in journal (Refereed)
    Abstract [en]

    A great deal of research has been done on capacity-constrained production–inventory systems, most of which concerns deterministic demand situations and single-product systems. In this paper we present a model of a multi-level capacity-constrained system when external demand is stochastic. Unlike the traditional total cost objective, adopted in the vast majority of capacity-constrained production–inventory models, the (expected) Net Present Value is here used as the objective function. Dynamic programming is chosen as the solution procedure. Numerical examples are given to explain the model and to illustrate features when changing available capacity.

    The Laplace transform together with input–output analysis are employed as tools to construct the model. This approach has been used in previous research to formulate a theoretical base for Material Requirements Planning (MRP) systems.

    The paper provides a further argument for the use of transforms in combination with matrix representations of product structures and capacity requirements, and it extends previous theory in the direction of capacity considerations combined with uncertainty in external demand. Dynamic programming is also shown to be a practical method for the multi-stage optimisation involved.

    The numerical examples further illustrate, for instance, the natural propensity for subordinate items to be lot sized in a more lumpy way than their parents, and also how the marginal benefit of capacity increments follows the law of diminishing returns. Also comparisons are made with solutions from the deterministic equivalence model, using average demand as a proxy.

  • 31.
    Gunnarsson, Helene
    et al.
    Linköping University, Department of Mathematics, Optimization . Linköping University, The Institute of Technology.
    Rönnqvist, Mikael
    Department of Finance and Management Science, Norwegian School of Economics and Business Administration.
    Solving a multi-period supply chain problem for a pulp company using heuristics—An application to Södra Cell AB2008In: International Journal of Production Economics, ISSN 0925-5273, E-ISSN 1873-7579, Vol. 116, no 1, p. 75-94Article in journal (Refereed)
    Abstract [en]

    In this paper, the integrated planning of production and distribution for a pulp company is considered. The tactical decisions included regard transportation of raw materials from harvest areas to pulp mills; production mix and contents at pulp mills; inventory; distribution of pulp products from mills to customers and the selection of potential orders and their levels at customers. The planning period is one year and several time periods are included. As a solution approach we make use of two different heuristic approaches. The main reason to use heuristics is the need for quick solution times. The first heuristic is based on a rolling planning horizon where iteratively a fixed number of time periods is taken into consideration. The second heuristic is based on Lagrangian decomposition and subgradient optimization. This provides optimistic bounds of the optimal objective function value that are better than the LP relaxation value, which can be used as a measure of the heuristic (pessimistic) solution quality. In addition, we apply the proposed rolling horizon heuristic in each iteration of the subgradient optimization. A number of cases based on real data is analysed which shows that the proposed solution approach is simple and provides high quality solutions.

  • 32.
    Göthe-Lundgren, Maud
    et al.
    Linköping University, Department of Mathematics, Optimization . Linköping University, The Institute of Technology.
    Lundgren, Jan T.
    Linköping University, Department of Mathematics, Optimization . Linköping University, The Institute of Technology.
    Persson, Jan A.
    Linköping University, Department of Mathematics, Optimization . Linköping University, The Institute of Technology.
    An optimization model for refinery production scheduling2002In: International Journal of Production Economics, ISSN 0925-5273, E-ISSN 1873-7579, Vol. 78, no 3, p. 255-270Article in journal (Refereed)
    Abstract [en]

    In this paper we describe a production planning and scheduling problem in an oil refinery company. The problem concerns the planning and the utilization of a production process consisting of one distillation unit and two hydro-treatment units. In the process crude oil is transformed to bitumen and naphthenic special oils. The aim of the scheduling is to decide which mode of operation to use in each processing unit at each point in time, in order to satisfy the demand while minimizing the production cost and taking storage capacities into account. The production cost includes costs for changing mode and for holding inventory. We formulate a mixed integer linear programming model for the scheduling problem. The model can be regarded as a generalized lot-sizing problem, where inventory capacities are considered and more than one product is obtained for some modes of operation. A number of modifications and extensions of the model are also discussed. It is shown how the optimization model can be used as a viable tool for supporting production planning and scheduling at the refinery, and that it is possible to analyze scheduling scenarios of realistic sizes. It is also shown that the model can support shipment planning and strategic decisions concerning new products and investments in storage capacity. © 2002 Elsevier Science B.V. All rights reserved.

  • 33.
    Johansson, Pontus
    et al.
    Linköping University, Department of Production Economics.
    Olhager, Jan
    Linköping University, Department of Production Economics.
    Industrial service profiling: Matching service offerings and processes2004In: International Journal of Production Economics, ISSN 0925-5273, E-ISSN 1873-7579, Vol. 89, no 3, p. 309-320Article in journal (Refereed)
    Abstract [en]

    Firms using industrial goods as a resource in their own operations need support and services to maintain an efficient use of these resources. Education, spare parts and maintenance are just some examples of services required by many industrial customers. These services make up a large part of many industrial companies purchase budget, but, even more importantly, for the supplier these services often make up a substantial proportion of the company's profit. There is also a trend towards the integration of goods and services. However, there is little help available on strategies for the efficient supply or manufacture of such services. An operations strategy should not be limited to supporting just new sales if the after-sales market of industrial services has a large impact on the company's competitive advantage. A complete operations strategy should therefore be linked not only to the marketing strategy, but also to a service strategy of the company. In this paper we take the supplier's view on the task of providing industrial services, i.e. the supply of after-sales services, including tangibles such as spare parts and consumables, related to the maintenance of industrial goods. We focus on the positioning of industrial services relative manufacturing, aiming at an integrated approach for manufacturing and service operations management. We extend the product-profiling concept of Hill to service operations, developing the concept of industrial service profiling, providing a detailed analysis of market and service offering characteristics relative production characteristics. The resulting profile reveals possible mismatches in the existing operations, and can also be used to identify areas in need of corrective actions.

  • 34.
    Johansson, Pontus
    et al.
    Linköping University, Department of Management and Engineering, Production Economics . Linköping University, The Institute of Technology.
    Saccani, Nicola
    Department of Mechanical and Industrial Engineering, University of Brescia, Brescia, Italy.
    Perona, Marco
    Department of Mechanical and Industrial Engineering, University of Brescia, Brescia, Italy.
    Configuring the after-sales service supply chain: A multiple case study2007In: International Journal of Production Economics, ISSN 0925-5273, E-ISSN 1873-7579, Vol. 110, no 1-2, p. 52-69Article in journal (Refereed)
    Abstract [en]

    After-sales service in firms manufacturing and selling durable goods has a strategic relevance in its potential contribution to company profitability, customer retention and product development. This paper addresses the configuration of the after-sales supply chain. Three configuration choices are analysed: The degree of vertical integration, the degree of centralisation, and the decoupling of activities (i.e. how activities are decomposed and separated organisationally). Exploratory case study research was performed over seven companies belonging to durable consumer goods industries. The empirical findings show that configuration choices vary, suggesting that no “one best way” exists. Moreover, many firms develop multiple configurations. Choices are influenced by drivers, including the attractiveness of the after-sales business, the strategic priorities, the characteristics of the physical product and the services offered, and the configuration of the manufacturing and distribution supply chain. The paper discusses how these drivers may lead to consistent configuration choices, and how choices are related.

  • 35.
    Li, Juan
    et al.
    Nanjing University, Peoples R China .
    Tang, Ou
    Linköping University, Department of Management and Engineering, Production Economics. Linköping University, The Institute of Technology.
    Capacity and pricing policies with consumer overflow behavior2012In: International Journal of Production Economics, ISSN 0925-5273, E-ISSN 1873-7579, Vol. 140, no 2, p. 825-832Article in journal (Refereed)
    Abstract [en]

    We analyze consumers choice and overflow behavior between two potential market segments with different fares, capacity allocated, and then develop the optimal capacity and pricing polices assuming that such consumers strategic behavior can be observed. Every consumer prefers to choose a fare to obtain their utmost value surplus, and select the second if the first-best choice cannot be satisfied. Our study indicates that the effort of fencing the segments should be considered to cope properly with pricing and capacity decisions in order to direct the overflows. Disregarding overflows could create differences in decisions as well as economic consequences. The study results can be implemented, but not limited, to understand the flight seat allocation problem with strategic consumers.

  • 36.
    Nordin, Fredrik
    Linköping University, The Institute of Technology. Linköping University, Department of Management and Engineering, Industrial Marketing and Industrial Economics .
    Linkages between service sourcing decisions and competitive advantage: A review, propositions, and illustrating cases2008In: International Journal of Production Economics, ISSN 0925-5273, E-ISSN 1873-7579, Vol. 114, no 1, p. 40-55Article in journal (Refereed)
    Abstract [en]

    This paper focuses on linkages between strategic service sourcing decisions and the competitiveness of business firms. It responds to calls for more research focusing on the outcomes of services and the nature and durability of service benefits and contributes with relatively comprehensive, detailed and managerially oriented knowledge regarding the linkages between service sourcing and competitive advantage. The paper reviews the literature and develops propositions regarding how different make-or-buy decisions, supply-base structures, and types of buyer-seller relationships influence the possibility of simultaneously maintaining positive bonds with customers, keeping costs low, and developing valued and differentiated offerings. The practical applications of the propositions are illustrated with four case studies. © 2008 Elsevier B.V. All rights reserved.

  • 37.
    Noroozi, Sayeh
    et al.
    Linköping University, Department of Management and Engineering, Production Economics. Linköping University, The Institute of Technology.
    Wikner, Joakim
    Linköping University, Department of Management and Engineering, Production Economics. Linköping University, The Institute of Technology.
    Sales and operations planning in the process industry: A literature review2017In: International Journal of Production Economics, ISSN 0925-5273, E-ISSN 1873-7579, Vol. 188, p. 139-155Article in journal (Refereed)
    Abstract [en]

    This paper provides a systematic literature review of Sales and Operations Planning (S&OP) in process industries. The aim is to investigate the present state of S&OP in process industries in comparison to discrete manufacturing industries and to identify the desired future state of the S&OP process based on the specific characteristics of process industries. The findings of this paper show that this issue has not received much attention in the academic world. Hence there is a need for conceptual models with focus on process industries’ specific characteristics. Process industries are actually hybrids of continuous production and discrete production (respectively, upstream and downstream of the discretization point) and the specific characteristics of process industries are related to the continuous production part. Thus, in this paper, the characteristics upstream of the discretization point are investigated and the integration of them in the S&OP process of the process industries is stressed.

  • 38.
    O'Brien, C.
    et al.
    Sch. of Mech., Mat., Mfg. Eng./Mgmt., University of Nottingham, University Park, Nottingham NG7 2RD, United Kingdom.
    Olhager, Jan
    Linköping University, The Institute of Technology. Linköping University, Department of Management and Engineering, Production Economics .
    Structuring and planning operations2003In: International Journal of Production Economics, ISSN 0925-5273, E-ISSN 1873-7579, Vol. 85, no 3, p. 273-Conference paper (Other academic)
    Abstract [en]

    [No abstract available]

  • 39.
    O'Brien, C.
    et al.
    Sch. of Mech., Mat., Mfg. Eng./Mgmt., University of Nottingham, University Park, Nottingham NG7 2RD, United Kingdom.
    Olhager, Jan
    Linköping University, The Institute of Technology. Linköping University, Department of Management and Engineering, Production Economics .
    Supply chain management - A production perspective2003In: International Journal of Production Economics, ISSN 0925-5273, E-ISSN 1873-7579, Vol. 85, no 2, p. 125-Conference paper (Other academic)
    Abstract [en]

    [No abstract available]

  • 40.
    O'Brien, C.
    et al.
    Nottingham University Business School, University of Nottingham, Jubilee Campus, Nottingham NG8 1BB, United Kingdom.
    Tang, Ou
    Linköping University, The Institute of Technology. Linköping University, Department of Management and Engineering, Production Economics .
    Integrated enterprise and supply chain management2006In: International Journal of Production Economics, ISSN 0925-5273, E-ISSN 1873-7579, Vol. 101, no 1 SPEC. ISS.Other (Other academic)
    Abstract [en]

    [No abstract available]

  • 41.
    OBrien, Christopher
    et al.
    University of Nottingham.
    Olhager, Jan
    Linköping University, The Institute of Technology. Linköping University, Department of Production Economics.
    Structuring and planning operations2003In: International Journal of Production Economics, ISSN 0925-5273, E-ISSN 1873-7579, Vol. 85, no 3, p. 273-273Article in journal (Refereed)
  • 42.
    OBrien, Christopher
    et al.
    University of Nottingham.
    Olhager, Jan
    Linköping University, The Institute of Technology. Linköping University, Department of Production Economics.
    Supply chain management: a production perspective2003In: International Journal of Production Economics, ISSN 0925-5273, E-ISSN 1873-7579, Vol. 85, no 2, p. 125-125Article in journal (Refereed)
  • 43.
    Olhager, Jan
    Linköping University, The Institute of Technology. Linköping University, Department of Production Economics.
    Strategic positioning of the order penetration point2003In: International Journal of Production Economics, ISSN 0925-5273, E-ISSN 1873-7579, Vol. 85, no 3, p. 319-329Article in journal (Refereed)
    Abstract [en]

    The order penetration point (OPP) defines the stage in the manufacturing value chain, where a particular product is linked to a specific customer order. Different manufacturing environments such as make-to-stock (MTS), assemble-to-order (ATO), make-to-order (MTO) and engineer-to-order all relate to different positions of the OPP. These may be considered as product delivery strategies, having different implications for manufacturing objectives such as customer service, manufacturing efficiency and inventory investment. Furthermore, the OPP may differ between products and over time for a particular manufacturing firm. In this paper, the positioning of the OPP is treated from a strategic perspective. Market, product, and production factors are identified that affect the OPP positioning and the shifting of the OPP upstream or downstream in the manufacturing value chain. The major factors are demand volume and volatility, and the relationship between delivery and production lead times. These factors are included in a model that allows the manufacturing firm to choose the right product delivery strategy. Different manufacturing strategies must be developed for pre-OPP operations (i.e. upstream, forecast-driven) vs. post-OPP operations (i.e. downstream, customer-order-driven), since these two stages are fundamentally different. As a consequence, a manufacturing firm that has an ATO product delivery strategy must differentiate between MTS operations (upstream the OPP) and MTO operations (downstream the OPP). For example, the competitive priorities differ: price for pre-OPP operations but delivery speed and flexibility for post-OPP operations. Therefore, decision categories, such as production planning and control, and performance measurement must be designed accordingly. Guidelines are provided for this strategic choice. ⌐ 2003 Elsevier Science B.V. All rights reserved.

  • 44.
    Olhager, Jan
    et al.
    Linköping University, The Institute of Technology. Linköping University, Department of Production Economics.
    Rudberg, Martin
    Linköping University, The Institute of Technology. Linköping University, Department of Production Economics.
    Wikner, Joakim
    Linköping University, The Institute of Technology. Linköping University, Department of Production Economics.
    Long-term capacity management: Linking the perspectives from manufacturing strategy and sales and operations planning2001In: International Journal of Production Economics, ISSN 0925-5273, E-ISSN 1873-7579, Vol. 69, no 2, p. 215-225Article in journal (Refereed)
    Abstract [en]

    Efficient long-term capacity management is vital to any manufacturing firm. It has implications on competitive performance in terms of cost, delivery speed, dependability and flexibility. In a manufacturing strategy, capacity is a structural decision category, dealing with dynamic capacity expansion and reduction relative to the long-term changes in demand levels. Sales and operations planning (S&OP) is the long-term planning of production levels relative to sales within the framework of a manufacturing planning and control system. Within the S&OP, resource planning is used for determining the appropriate capacity levels in order to support the production plan. Manufacturing strategy and sales and operations planning provide two perspectives on long-term capacity management, raising and treating different issues. In this paper, we compare and link them in a framework for long-term capacity management.

  • 45.
    Olhager, Jan
    et al.
    Linköping University, Department of Production Economics.
    Selldin, Erik
    Linköping University, Department of Production Economics.
    Supply chain management survey of Swedish manufacturing firms2004In: International Journal of Production Economics, ISSN 0925-5273, E-ISSN 1873-7579, Vol. 89, no 3, p. 353-361Article in journal (Refereed)
    Abstract [en]

    Supply chain management practices and principles are evolving and changing rapidly, e.g. through modern information and communication technologies. These changes affect the ways supply chains are designed, the way they are managed, and how planning and control activities take place within these chains. But how far have companies come in dealing with supply chain issues? This paper investigates supply chain management strategies and practices in a sample of 128 Swedish manufacturing firms. We specifically study issues related to the supply chain design, integration, planning and control, and communication tools for managing supply chains. The main findings indicate the following. The extent to which suppliers and customers are involved in supply chain planning and control is expected to increase steadily over the next 2 years. The primary priority for the selection of supply chain partners is quality performance. However, delivery dependability, cost efficiency, volume flexibility, and delivery speed are also judged to be important inputs to the supply chain partner selection process. Today, companies expect to broaden and deepen the use of new information and communication technologies for improving supply chain operations. Our findings concerning future supply chain management practices, principles and priorities are discussed.

  • 46.
    Persson, Fredrik
    et al.
    Linköping University, The Institute of Technology. Linköping University, Department of Production Economics.
    Olhager, Jan
    Linköping University, The Institute of Technology. Linköping University, Department of Production Economics.
    Performance simulation of supply chain designs2002In: International Journal of Production Economics, ISSN 0925-5273, E-ISSN 1873-7579, Vol. 77, no 3, p. 231-245Article in journal (Refereed)
    Abstract [en]

    The focus on supply chain management has increased in recent years, among academics as well as among practitioners. In this paper, we present a supply chain simulation study for a real case, concerned with the manufacturing of mobile communication systems. The purpose of the study is twofold. One objective is to evaluate alternative supply chain designs with respect to quality, lead-times and costs as the key performance parameters. A second objective is to increase the understanding of the interrelationships among these and other parameters, relevant for the design of the supply chain structure. The design alternatives differ in terms of the level of integration and synchronisation between supply chain stages. Modelling and validation issues are highlighted since these are fundamental to a supply chain simulation study. The results are discussed and a model capturing the relationships among cost, quality, and lead-times, based on the simulation study, is presented. ⌐ 2002 Elsevier Science B.V. All rights reserved.

  • 47.
    Prajogo, Daniel
    et al.
    Monash University, Australia.
    Olhager, Jan
    Linköping University, Department of Management and Engineering, Production Economics. Linköping University, The Institute of Technology.
    Supply chain integration and performance: The effects of long-term relationships, information technology and sharing, and logistics integration2012In: International Journal of Production Economics, ISSN 0925-5273, E-ISSN 1873-7579, Vol. 135, no 1, p. 514-522Article in journal (Refereed)
    Abstract [en]

    Supply chain integration is widely considered by both practitioners and researchers a vital contributor to supply chain performance. The two key flows in such relationships are material and information. Previous studies have addressed information integration and material (logistics) integration in separate studies. In this paper, we investigate the integrations of both information and material flows between supply chain partners and their effect on operational performance. Specifically, we examine the role of long-term supplier relationship as the driver of the integration. Using data from 232 Australian firms, we find that logistics integration has a significant effect on operations performance. Information technology capabilities and information sharing both have significant effects on logistics integration. Furthermore, long-term supplier relationships have both direct and indirect significant effects on performance; the indirect effect via the effect on information integration and logistics integration.

  • 48.
    Shuoguo, Wei
    et al.
    Linköping University, Department of Management and Engineering. Linköping University, The Institute of Technology.
    Tang, Ou
    Linköping University, Department of Management and Engineering, Production Economics. Linköping University, Faculty of Science & Engineering.
    Liu, Weihua
    College of Management and Economics, Tianjin University, Tianjin, China.
    Refund policies for cores with quality variation in OEM remanufacturing2015In: International Journal of Production Economics, ISSN 0925-5273, E-ISSN 1873-7579, Vol. 170, p. 629-640Article in journal (Refereed)
    Abstract [en]

    Cores are essential for the remanufacturing business. The lack of cores with proper quality is reported as a highly ranked factor that limits both third party and OEM (Original Equipment Manufacturer) remanufacturers. To encourage the return of quality cores, in practice it is common for OEMs to charge a certain amount of deposit, and refund it fully or partially depending on the quality of cores during the return process. Furthermore, the core quality varies and leads to different remanufacturing costs. The core refund policy should reflect such differences, in order to encourage the customers to return the cores with “correct” quality. In this paper, we propose three refund policies and develop profit maximization model for the remanufacturer. Under the assumption of quality following a uniform distribution, we develop analytical solutions for the refund policies and principles for quality partition. Numerical examples indicate that the customers׳ valuation of core is an important factor influencing the return rates and the economics performance of the system as well. Multiple refund policy with a small number of quality classes already brings major advantages, even with a market where the competition for collecting cores is relatively high. The study is also extended to the cases that core quality follows an adjusted normal distribution. Credit refund policies are also studied for comparison purpose.

  • 49.
    Tang, Ou
    Linköping University, The Institute of Technology. Linköping University, Department of Management and Engineering, Production Economics .
    Simulated annealing in lot sizing problems2004In: International Journal of Production Economics, ISSN 0925-5273, E-ISSN 1873-7579, Vol. 88, no 2, p. 173-181Article in journal (Refereed)
    Abstract [en]

    This paper provides a brief presentation of simulated annealing techniques and their application in lot sizing problems. By using a binary matrix to describe lot sizing decisions, it is ready to model this type of production/ inventory system as a combinatorial optimisation problem and solve it within the simulated annealing framework. Experiments are conducted in order to understand how different aspects of the algorithm, especially the annealing schedule, affect the quality of the solution. (C) 2003 Elsevier B.V. All rights reserved.

  • 50.
    Tang, Ou
    et al.
    Linköping University, The Institute of Technology. Linköping University, Department of Management and Engineering, Production Economics.
    Cao, Debi
    Department of Administration Engineering Keio University.
    Schvaneveldt, Shane
    Goddard School of Business and Economics Weber State University.
    Institutional perspectives on supply chain management2008In: International Journal of Production Economics, ISSN 0925-5273, E-ISSN 1873-7579, Vol. 115, no 2, p. 261-Article in journal (Other academic)
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