Cost Implications of Planned Lead Times in Supply Chain Operations Planning

Topics:
Inventory Management,
Logistics Planning
Tags:
Enterprise Software,
Production Plan,
Programming,
Programming Model,
Software,
Supply Chain,
Supply Chain Management (SCM)
Source:
Technical University of Eindhoven

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Overview: In this paper we consider Supply Chain Operations Planning (SCOP) in a rolling horizon context under demand uncertainty. Production plans are calculated using a linear programming model. While in most mathematical programming models for SCOP the lead time is considered to be equal to zero or equal to the minimum processing time, we consider planned lead times. In this paper we concentrate on the optimal setting of the planned lead time. From queueing theory we know that the waiting time depends on the variance of the inter arrival times and on the utilization rate of the server.

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Format: PDF | Size: 207KB | Date: Dec 2003 | Pages: 18

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