Short-term robustness of production management systems: new methodology

Jack P.C. Kleijnen and E. Gaury
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E. Gaury: Tilburg University, Center for Economic Research

No 29, Discussion Paper from Tilburg University, Center for Economic Research

Abstract: This paper investigates the short-term robustness of production planning and control systems. This robustness is defined here as the system's ability to maintain short-term service probabilities (i.e., the probability that the fill rate remains within a prespecified range), in a variety of environments (scenarios). For this investigation, the paper introduces a heuristic, stagewise methodology that combines the techniques of discrete-event simulation, heuristic optimization, risk or uncertainty analysis, and bootstrapping. This methodology compares production control systems, subject to a short-term fill-rate constraint while minimizing long-term work-in-process (WIP). This provides a new tool for performance analysis in operations management. The methodology is illustrated via the example of a production line with four stations and a single product; it compares Kanban, Conwip, Hybrid, and Generic production control schemes.

JEL-codes: M11 D81 (search for similar items in EconPapers)
Date: 2000
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Persistent link: http://EconPapers.repec.org/RePEc:dgr:kubcen:200029

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