Uncapacitated production and location planning models with demand fulfillment flexibility

Y Merzifonluoglu, J Geunes*

*Corresponding author for this work

Research output: Contribution to journalArticleScientificpeer-review

12 Citations (Scopus)

Abstract

A wealth of past research on production planning models seeks to meet prescribed demands at minimum cost. In many contexts, demand comes from independent sources, not all of which are necessarily profitable. We consider such planning problems from a different perspective, assuming certain demand characteristics are decision variables. We wish to determine optimal levels of demand, production, and inventory for every planning period when flexibility exists in selecting demands and their delivery timing. We present an optimal solution method under certain cost structures, and computational tests demonstrating the effectiveness of a dual-based heuristic for the general problem, which is NP-Hard. (c) 2005 Elsevier B.V. All rights reserved.

Original languageEnglish
Pages (from-to)199-216
JournalInternational Journal of Production Economics
Volume102
Issue number2
DOIs
Publication statusPublished - Aug 2006
Externally publishedYes

Keywords

  • production planning
  • demand management
  • flexible facility location
  • AVAILABLE-TO-PROMISE
  • ORDER ACCEPTANCE
  • LOT
  • MANAGEMENT
  • DECISIONS
  • PRICE
  • TIME

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