The Multi-Product Production Cycling Problem: Development of Heuristics.
Abstract
The multi-product production cycling problem is concerned with the determination of a production/inventory policy for a single capacitated production facility which is dedicated to producing a family of products. This paper studies this problem assuming stochastic demand. The one-product problem is formulated as a Markov decision problem which may be reasonably solved. For the multi-product problem, heuristic decision rules are proposed. In the context of an identical-product problem, we develop a heuristic decision policy which is based on the analysis of the one-product problem, and on two new notions: the composite product and the lead-time adjustment. This heuristic is then extended to the identical-cost problem, and the correlated demand problem. Arguments are presented for the generality of the identical-cost problem, and hence the generality of the proposed heuristic policy. (Author)
Document Details
- Document Type
- Technical Report
- Publication Date
- Mar 01, 1978
- Accession Number
- ADA053243
Entities
People
- Stephen C. Graves
Organizations
- Massachusetts Institute of Technology