A Note on Ending Inventory Valuation in Multiperiod Production Scheduling

In a recent paper, Fisher et al. (2001) present a method to mitigate end-effects in lot sizing byincluding a valuation term for end-of-horizon inventory in the objective function of the short-horizon model. Computational tests show that the proposed method outperforms the Wagner-Whitin algorithm and the Silver-Meal heuristic, under several demand patterns, within arolling horizon framework. We replicate the computational tests also including a straightforward method that assumes the same knowledge about future demand as the ending inventory valuation method. Our results indicate that the superior performance reported by Fisher et al. is to a large extent due to the fact that their method assumes that quite accurate knowledge about future demand is available, whereas the traditional methods do not use any information about demand beyond the short model horizon. Moreover

Modeling Industrial Lot Sizing Problems: A Review

In this paper we give an overview of recent developments in the field of modeling single-level dynamic lot sizing problems. The focus of this paper is on the modeling various industrial extensions and not on the solution approaches. The timeliness of such a review stems from the growing industry need to solve more realistic and comprehensive production planning problems. First, several different basic lot sizing problems are defined. Many extensions of these problems have been proposed and the research basically expands in two opposite directions. The first line of research focuses on modeling the operational aspects in more detail. The discussion is organized around five aspects: the set ups, the characteristics of the production process, the inventory, demand side and rolling horizon. The second direction is towards more tactical and strategic models in which the lot sizing problem is a core substructure, such as integrated production-distribution planning or supplier selection. Recent advances in both directions are discussed. Finally, we give some concluding remarks and point out interesting areas for future research

Stochastic Stackelberg equilibria with applications to time dependent newsvendor models

In this paper we prove a sufficient maximum principle for general stochastic differential Stackelberg games, and apply the theory to continuous time newsvendor problems. In the newsvendor problem a manufacturer sells goods to a retailer, and the objective of both parties is to maximize expected profits under a random demand rate. Our demand rate is an Ito-Levy process, and to increase realism information is delayed, e.g., due to production time. We provide complete existence and uniqueness proofs for a series of special cases, including geometric Brownian motion and the Ornstein-Uhlenbeck process, both with time variable coefficients. Moreover, these results are operational because we are able to offer explicit solution formulas. An interesting finding is that more precise information may be a considerable disadvantage for the retailer.Stochastic differential games; newsvendor model; delayed information; Ito-Levy processes

Business Modeling Framework For Personalization In Mobile Business Services

Is presented the structure of a formal framework for personalizationfeatures for mobile business services, which can be used to drive thebusiness modeling of M-business services from a service provider pointof view. It also allows to compute the revenue as linked topersonalization levels and features. A case study has been performedin the area of personalized location based mobile servicespersonalization;individual profiles;location based services;mobile business;mobile services

Operations planning test bed under rolling horizons, multiproduct,multiechelon, multiprocess for capacitated production planning modelling with strokes

[EN] One of the problems when conducting research in mathematical programming models for operations planning is having an adequate database of experiments that can be used to verify advances and developments with enough factors to understand different consequences. This paper presents a test bed generator and instances database for a rolling horizons analysis for multiechelon planning, multiproduct with alternatives processes, multistroke, multicapacity with different stochastic demand patterns to be used with a stroke-like bill of materials considering production costs, setup, storage and delays for operations management. From the analysis of the operations planning obtained from this test bed, it is concluded that a product structure with an alternative process obtains the lowest total cost and the highest service level. In addition, decreasing seasonal demand could present a lower total cost than constant demand, but would generate a worse service level. 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Efficient Circulation of Railway Rolling Stock

Railway rolling stock (locomotives, carriages, and train units) is oneof the most significant cost sources for operatorsof passenger trains,both public and private. Rolling stock costsare due to materialacquisition, power supply, and material maintenance. The efficientcirculation of rolling stock material is therefore one of theobjectives pursued. In this paper we focus on the circulation of trainunits on a single line. In order to utilize the train units on thisline in an efficient way, they are added to or removed from the trainsin certain stations, according to the passengers' seat demand. Sinceadding and removing train units has to respect specific rules, it isimportant to know the exact order of the train units in the trains.This aspect strongly increases the complexity of the rolling stockcirculation problem. In this paper we present aninteger programmingapproach to solve this problem. We also apply this approach to a reallife case study based on the 2001-2002 timetable of NS Reizigers, themajor Dutch operator of passenger trains.logistics;operations research;public transportation;railways;rolling stock circulation

Efficient Circulation of Railway Rolling Stock

Railway rolling stock (locomotives, carriages, and train units) is one of the most significant cost sources for operatorsof passenger trains, both public and private. Rolling stock costsare due to material acquisition, power supply, and material maintenance. The efficient circulation of rolling stock material is therefore one of the objectives pursued. In this paper we focus on the circulation of train units on a single line. In order to utilize the train units on this line in an efficient way, they are added to or removed from the trains in certain stations, according to the passengers

Shunting of Passenger Train Units in a Railway Station

In this paper we introduce the problem of shunting passenger trainunits in a railway station. Shunting occurs whenever train units aretemporarily not necessary to operate a given timetable. We discussseveral aspects of this problem and focus on two subproblems. Wepropose mathematical models for these subproblems together with asolution method based on column generation. Furthermore, a newefficient and speedy solution technique for pricing problems in columngeneration algorithms is introduced. Finally, we present computationalresults based on real life instances from Netherlands Railways.logistics;column generation;railway optimization;real world application

Integrating Closed-loop Supply Chains and Spare Parts Management at IBM

Ever more companies are recognizing the benefits of closed-loop supplychains that integrate product returns into business operations. IBMhas been among the pioneers seeking to unlock the value dormant inthese resources. We report on a project exploiting product returns asa source of spare parts. Key decisions include the choice of recoveryopportunities to use, the channel design, and the coordination ofalternative supply sources. We developed an analytic inventory controlmodel and a simulation model to address these issues. Our results showthat procurement cost savings largely outweigh reverse logistics costsand that information management is key to an efficient solution. Ourrecommendations provide a basis for significantly expanding the usageof the novel parts supply source, which allows for cutting procurementcosts.supply chain management;reverse logistics;product recovery;inventory management;service management