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Management Science
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Determining Optimal Reorder Intervals in Capacitated Production-Distribution Systems

Determining optimal reorder intervals in capacitated production- distribution systems
Authors: Peter L. Jackson; William L. Maxwell; John A. Muckstadt;

Determining Optimal Reorder Intervals in Capacitated Production-Distribution Systems

Abstract

The problem of determining consistent and realistic reorder intervals in complex production-distribution environments was formulated as a large scale, nonlinear, integer programming problem by Maxwell and Muckstadt (Maxwell, W. L., J. A. Muckstadt. 1985. Establishing consistent and realistic reorder intervals in production-distribution systems. Oper. Res. 33(6, November–December) 1316–1341.). They show how the special structure of the problem permits its solution by a standard network flow algorithm. In this paper, we review the Maxwell-Muckstadt model, provide necessary and sufficient conditions that characterize the solution, and show that the optimal partition of nodes in the production-distribution network is invariant to an arbitrary scaling of the set-up and holding cost parameters. We consider two capacitated versions of the model: one with a single constrained work center, and the other with multiple constrained work centers. For single constraint problems, the invariance corollary provides a simple closed-form solution. For the multiple work center problem, the invariance corollary is exploited in the development of a Lagrange multiplier method of solution. The technique is illustrated by means of a small example problem and a problem taken from a real industrial setting.

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Keywords

Lagrange multiplier method, production- distribution network, multiple constrained work centers, logistics, optimal reorder intervals, single constrained work center, Integer programming, Inventory, storage, reservoirs, capacitated versions, Applications of mathematical programming, production scheduling, lot-sizing, nonlinear programming applications, Nonlinear programming, large scale, nonlinear, integer programming, Production models, complex production-distribution environments

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selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
59
Top 10%
Top 1%
Average
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