EconPapers    
Economics at your fingertips  
 

Finding Optimal Material Release Times Using Simulation-Based Optimization

Tito Homem- de-Mello, Alexander Shapiro () and Mark L. Spearman
Additional contact information
Tito Homem- de-Mello: School of Industrial and Systems Engineering, Georgia Institute of Technology, Atlanta, Georgia 30332-0205
Mark L. Spearman: School of Industrial and Systems Engineering, Georgia Institute of Technology, Atlanta, Georgia 30332-0205

Management Science, 1999, vol. 45, issue 1, 86-102

Abstract: We present a method for setting release times for jobs with due dates in a stochastic production flow line for which the sequence of jobs has been determined. Unlike other approaches to this problem, ours considers a transient situation. Thus, the flow line will typically contain work in process (WIP), that is, jobs that have been previously released to the system. Our goal is to develop a job release schedule that not only minimizes tardiness but also maximizes flexibility. The philosophy can be characterized as one that seeks to "release as late as possible, but no later!" Our methodology is based on Monte Carlo simulation and consequent optimization by a method that became known as "stochastic counterpart" or "sample path" simulation-based optimization techniques. We use this method to minimize an expected value objective function that contains terms for tardiness and flow time "costs." We include a discussion of how the cost parameters of this objective function can be obtained by considering a "characteristic curve" for the system. We also discuss means for obtaining sensitivity analysis with respect to due dates and service times distributions parameters. We conclude with a numerical example.

Keywords: stochastic systems; simulation-based optimization; flow lines; release strategies; tardiness; lead times; manufacturing executions systems; enterprise resources planning systems (search for similar items in EconPapers)
Date: 1999
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8) Track citations by RSS feed

Downloads: (external link)
http://dx.doi.org/10.1287/mnsc.45.1.86 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:inm:ormnsc:v:45:y:1999:i:1:p:86-102

Access Statistics for this article

More articles in Management Science from INFORMS Contact information at EDIRC.
Bibliographic data for series maintained by Matthew Walls ().

 
Page updated 2019-12-04
Handle: RePEc:inm:ormnsc:v:45:y:1999:i:1:p:86-102