Optimal control of decoupling point with deteriorating items

Purpose: The aim of this paper is to develop a dynamic model to simultaneously determine the optimal position of the decoupling point and the optimal path of the production rate as well as the inventory level in a supply chain. With the objective to minimize the total cost of the deviation from the...

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Detalhes bibliográficos
Autores: Yang, Kuan, Wang, Ermei
Formato: artículo
Fecha de publicación:2014
País:España
Recursos:Universitat Politècnica de Catalunya (UPC)
Repositorio:UPCommons. Portal del coneixement obert de la UPC
Idioma:inglés
OAI Identifier:oai:upcommons.upc.edu:2099/16334
Acesso em linha:https://hdl.handle.net/2099/16334
Access Level:acceso abierto
Palavra-chave:Production control
Inventories
Production management
Decoupling points
Production-inventory management
Optimal control theory
Deteriorating items
Time-varying demand
Supply chain management
Producció -- Control
Estocs
Producció -- Direcció i administració
Àrees temàtiques de la UPC::Economia i organització d'empreses::Direcció d’operacions
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oai_identifier_str oai:upcommons.upc.edu:2099/16334
network_acronym_str ES
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repository_id_str
spelling Optimal control of decoupling point with deteriorating itemsYang, KuanWang, ErmeiProduction controlInventoriesProduction managementDecoupling pointsProduction-inventory managementOptimal control theoryDeteriorating itemsTime-varying demandSupply chain managementProducció -- ControlEstocsProducció -- Direcció i administracióÀrees temàtiques de la UPC::Economia i organització d'empreses::Direcció d’operacionsPurpose: The aim of this paper is to develop a dynamic model to simultaneously determine the optimal position of the decoupling point and the optimal path of the production rate as well as the inventory level in a supply chain. With the objective to minimize the total cost of the deviation from the target setting, the closed forms of the optimal solution are derived over a finite planning horizon with deterioration rate under time-varying demand rate. Design/methodology/approach: The Pontryagin's Maximum Principle is employed to explore the optimal position of decoupling point and the optimal production and inventory rate for the proposed dynamic models. The performances of parameters are illustrated through analytical and numerical approaches. Findings: The results denote that the optimal production rate and inventory level are closely related to the target setting which are highly dependent on production policy; meanwhile the optimal decoupling point is exist and unique with the fluctuating of deteriorating rate and product life cycle. The further analyses through both mathematic and numerical approaches indicate that the shorten of product life cycle shifts the optimal decoupling point forward to the end customer meanwhile a backward shifting appears when the deterioration rate increase. Research limitations/implications: There is no shortage allowed and the replacement policy is not taken into account. Practical implications: Solutions derived from this study of the optimal production-inventory plan and decoupling point are instructive for operation decision making. The obtained knowledge about the performance of different parameters is critical to deteriorating supply chains management. Originality/value: Many previous models of the production-inventory problem are only focused on the cost. The paper introduces the decoupling point control into the production and inventory problem such that a critical element-customer demand, can be taken into account. And the problem is solved as dynamic when the production rate, inventory level and the position of the decoupling point are all regarded as decision variables.Peer ReviewedOmniaScience20142014-12-0120152015-04-16journal articlehttp://purl.org/coar/resource_type/c_6501NAhttp://purl.org/coar/version/c_be7fb7dd8ff6fe43info:eu-repo/semantics/articleapplication/pdfhttps://hdl.handle.net/2099/16334reponame:UPCommons. Portal del coneixement obert de la UPCinstname:Universitat Politècnica de Catalunya (UPC)Inglésengopen accesshttp://purl.org/coar/access_right/c_abf2Attribution-NonCommercial 3.0 Spainhttp://creativecommons.org/licenses/by-nc/3.0/es/info:eu-repo/semantics/openAccessoai:upcommons.upc.edu:2099/163342026-05-27T15:37:01Z
dc.title.none.fl_str_mv Optimal control of decoupling point with deteriorating items
title Optimal control of decoupling point with deteriorating items
spellingShingle Optimal control of decoupling point with deteriorating items
Yang, Kuan
Production control
Inventories
Production management
Decoupling points
Production-inventory management
Optimal control theory
Deteriorating items
Time-varying demand
Supply chain management
Producció -- Control
Estocs
Producció -- Direcció i administració
Àrees temàtiques de la UPC::Economia i organització d'empreses::Direcció d’operacions
title_short Optimal control of decoupling point with deteriorating items
title_full Optimal control of decoupling point with deteriorating items
title_fullStr Optimal control of decoupling point with deteriorating items
title_full_unstemmed Optimal control of decoupling point with deteriorating items
title_sort Optimal control of decoupling point with deteriorating items
dc.creator.none.fl_str_mv Yang, Kuan
Wang, Ermei
author Yang, Kuan
author_facet Yang, Kuan
Wang, Ermei
author_role author
author2 Wang, Ermei
author2_role author
dc.subject.none.fl_str_mv Production control
Inventories
Production management
Decoupling points
Production-inventory management
Optimal control theory
Deteriorating items
Time-varying demand
Supply chain management
Producció -- Control
Estocs
Producció -- Direcció i administració
Àrees temàtiques de la UPC::Economia i organització d'empreses::Direcció d’operacions
topic Production control
Inventories
Production management
Decoupling points
Production-inventory management
Optimal control theory
Deteriorating items
Time-varying demand
Supply chain management
Producció -- Control
Estocs
Producció -- Direcció i administració
Àrees temàtiques de la UPC::Economia i organització d'empreses::Direcció d’operacions
description Purpose: The aim of this paper is to develop a dynamic model to simultaneously determine the optimal position of the decoupling point and the optimal path of the production rate as well as the inventory level in a supply chain. With the objective to minimize the total cost of the deviation from the target setting, the closed forms of the optimal solution are derived over a finite planning horizon with deterioration rate under time-varying demand rate. Design/methodology/approach: The Pontryagin's Maximum Principle is employed to explore the optimal position of decoupling point and the optimal production and inventory rate for the proposed dynamic models. The performances of parameters are illustrated through analytical and numerical approaches. Findings: The results denote that the optimal production rate and inventory level are closely related to the target setting which are highly dependent on production policy; meanwhile the optimal decoupling point is exist and unique with the fluctuating of deteriorating rate and product life cycle. The further analyses through both mathematic and numerical approaches indicate that the shorten of product life cycle shifts the optimal decoupling point forward to the end customer meanwhile a backward shifting appears when the deterioration rate increase. Research limitations/implications: There is no shortage allowed and the replacement policy is not taken into account. Practical implications: Solutions derived from this study of the optimal production-inventory plan and decoupling point are instructive for operation decision making. The obtained knowledge about the performance of different parameters is critical to deteriorating supply chains management. Originality/value: Many previous models of the production-inventory problem are only focused on the cost. The paper introduces the decoupling point control into the production and inventory problem such that a critical element-customer demand, can be taken into account. And the problem is solved as dynamic when the production rate, inventory level and the position of the decoupling point are all regarded as decision variables.
publishDate 2014
dc.date.none.fl_str_mv 2014
2014-12-01
2015
2015-04-16
dc.type.none.fl_str_mv journal article
http://purl.org/coar/resource_type/c_6501
NA
http://purl.org/coar/version/c_be7fb7dd8ff6fe43
dc.type.openaire.fl_str_mv info:eu-repo/semantics/article
format article
dc.identifier.none.fl_str_mv https://hdl.handle.net/2099/16334
url https://hdl.handle.net/2099/16334
dc.language.none.fl_str_mv Inglés
eng
language_invalid_str_mv Inglés
language eng
dc.rights.none.fl_str_mv open access
http://purl.org/coar/access_right/c_abf2
Attribution-NonCommercial 3.0 Spain
http://creativecommons.org/licenses/by-nc/3.0/es/
dc.rights.openaire.fl_str_mv info:eu-repo/semantics/openAccess
rights_invalid_str_mv open access
http://purl.org/coar/access_right/c_abf2
Attribution-NonCommercial 3.0 Spain
http://creativecommons.org/licenses/by-nc/3.0/es/
eu_rights_str_mv openAccess
dc.format.none.fl_str_mv application/pdf
dc.publisher.none.fl_str_mv OmniaScience
publisher.none.fl_str_mv OmniaScience
dc.source.none.fl_str_mv reponame:UPCommons. Portal del coneixement obert de la UPC
instname:Universitat Politècnica de Catalunya (UPC)
instname_str Universitat Politècnica de Catalunya (UPC)
reponame_str UPCommons. Portal del coneixement obert de la UPC
collection UPCommons. Portal del coneixement obert de la UPC
repository.name.fl_str_mv
repository.mail.fl_str_mv
_version_ 1869412489494528000
score 15,300719

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