Coordinated pricing and inventory control problems with capacity constraints and fixed ordering cost

This article addresses a single‐item, finite‐horizon, periodic‐review coordinated decision model on pricing and inventory control with capacity constraints and fixed ordering cost. Demands in different periods are random and independent of each other, and their distributions depend on the price in the current period. Each period's stochastic demand function is the additive demand model. Pricing and ordering decisions are made at the beginning of each period, and all shortages are backlogged. The objective is to find an optimal policy that maximizes the total expected discounted profit. We show that the profit‐to‐go function is strongly CK‐concave, and the optimal policy has an (s,S,P) ‐like structure. © 2012 Wiley Periodicals, Inc. Naval Research Logistics, 2012     

Production and transport logistics scheduling with two transport mode choices

This paper considers a new class of scheduling problems arising in logistics systems in which two different transportation modes are available at the stage of product delivery. The mode with the shorter transportation time charges a higher cost. Each job ordered by the customer is first processed in the manufacturing facility and then transported to the customer. There is a due date for each job to arrive to the customer. Our approach integrates the machine scheduling problem in the manufacturing stage with the transportation mode selection problem in the delivery stage to achieve the global maximum benefit. In addition to studying the NP‐hard special case in which no tardy job is allowed, we consider in detail the problem when minimizing the sum of the total transportation cost and the total weighted tardiness cost is the objective. We provide a branch and bound algorithm with two different lower bounds. The effectiveness of the two lower bounds is discussed and compared. We also provide a mathematical model that is solvable by CPLEX. Computational results show that our branch and bound algorithm is more efficient than CPLEX. © 2005 Wiley Periodicals, Inc. Naval Research Logistics, 2005     

Bounding the optimal burn‐in time for a system with two types of failure

Burn‐in is a widely used method to improve the quality of products or systems after they have been produced. In this paper, we consider the problem of determining bounds to the optimal burn‐in time and optimal replacement policy maximizing the steady state availability of a repairable system. It is assumed that two types of system failures may occur: One is Type I failure (minor failure), which can be removed by a minimal repair, and the other is Type II failure (catastrophic failure), which can be removed only by a complete repair. Assuming that the underlying lifetime distribution of the system has a bathtub‐shaped failure rate function, upper and lower bounds for the optimal burn‐in time are provided. Furthermore, some other applications of optimal burn‐in are also considered. © 2004 Wiley Periodicals, Inc. Naval Research Logistics, 2004     

Scheduling maintenance and semiresumable jobs on a single machine

The majority of scheduling literature assumes that the machines are available at all times. In this paper, we study single machine scheduling problems where the machine maintenance must be performed within certain intervals and hence the machine is not available during the maintenance periods. We also assume that if a job is not processed to completion before the machine is stopped for maintenance, an additional setup is necessary when the processing is resumed. Our purpose is to schedule the maintenance and jobs to minimize some performance measures. The objective functions that we consider are minimizing the total weighted job completion times and minimizing the maximum lateness. In both cases, maintenance must be performed within a fixed period T, and the time for the maintenance is a decision variable. In this paper, we study two scenarios concerning the planning horizon. First, we show that, when the planning horizon is long in relation to T, the problem with either objective function is NP-complete, and we present pseudopolynomial time dynamic programming algorithms for both objective functions. In the second scenario, the planning horizon is short in relation to T. However, part of the period T may have elapsed before we schedule any jobs in this planning horizon, and the remaining time before the maintenance is shorter than the current planning horizon. Hence we must schedule one maintenance in this planning horizon. We show that the problem of minimizing the total weighted completion times in this scenario is NP-complete, while the shortest processing time (SPT) rule and the earliest due date (EDD) rule are optimal for the total completion time problem and the maximum lateness problem respectively. © 1999 John Wiley & Sons, Inc. Naval Research Logistics 46: 845–863, 1999     

On the robustness of the modified beta distribution for acceptance sampling in statistical quality control

The purpose of this article is to examine the robustness of the modified Beta distribution as a probability distribution of lot fraction defectives in Bayesian acceptance sampling for statistical quality control. In complex manufacturing systems, a production process may consist of multiple production stages in a serial or nonserial fashion. Hence, inputs to a production station can be a result of subassembly of several inputs, or outputs of some inspection stations for some prior work stages. We investigate the effectiveness of the modified Beta distribution as an approximation to the lot fraction defectives probability of inputs at intermediate work stations. The robustness of the modified Beta distribution simplifies both the determination of the optimal sampling plan for acceptance sampling, and the calibration of distributions resulted from subassembly or inspection operations in complex manufacturing systems.     

Approximate semieconomic design of control charts with multiple control limtis

Statistical quality control of complicated production processes subject to a multiplicity of assignable causes may require the utilization of control charts with multiple control limits. This article presents an approximate semieconomic design of such charts, which is easily implementable in practical situations. Evaluations of the semieconomic control chart design show that the proposed approximate method results in solutions that are very close to the true optima and can be obtained with minimal computational effort.     

Scheduling semiconductor test operations: Minimizing maximum lateness and number of tardy jobs on a single machine

We examine a class of single-machine scheduling problems with sequence-dependent setup times that arise in the context of semiconductor test operations. We present heuristics for the problems of minimizing maximum lateness with dynamic arrivals and minimizing number of tardy jobs. We exploit special problem structure to derive worst-case error bounds. The special problem structure also enables us to derive dynamic programming procedures for the problems where all jobs are available simultaneously.     

Multi-item service constrained (s,S) policies for spare parts logistics systems

Many organizations providing service support for products or families of products must allocate inventory investment among the parts (or, identically, items) that make up those products or families. The allocation decision is crucial in today's competitive environment in which rapid response and low levels of inventory are both required for providing competitive levels of customer service in marketing a firm's products. This is particularly important in high-tech industries, such as computers, military equipment, and consumer appliances. Such rapid response typically implies regional and local distribution points for final products and for spare parts for repairs. In this article we fix attention on a given product or product family at a single location. This single-location problem is the basic building block of multi-echelon inventory systems based on level-by-level decomposition, and our modeling approach is developed with this application in mind. The product consists of field-replaceable units (i.e., parts), which are to be stocked as spares for field service repair. We assume that each part will be stocked at each location according to an (s, S) stocking policy. Moreover, we distinguish two classes of demand at each location: customer (or emergency) demand and normal replenishment demand from lower levels in the multiechelon system. The basic problem of interest is to determine the appropriate policies (s_i S_i) for each part i in the product under consideration. We formulate an approximate cost function and service level constraint, and we present a greedy heuristic algorithm for solving the resulting approximate constrained optimization problem. We present experimental results showing that the heuristics developed have good cost performance relative to optimal. We also discuss extensions to the multiproduct component commonality problem.     

The discrete evasion game with three-move lag

The discrete evasion game with three-move lag, formulated over 30 years ago, was one of the earliest games with time-lag complications. This game remains unsolved even though it is well known that the game has a value. In this article we obtain an upper bound for the value by constructing a strategy which consists of 400 conditional probabilities for the minimizing player. This is believed to be the best upper bound known.     

A continuous-review inventory model with constant resupply time and defective items

As a result of imperfect production and inspection by suppliers, pilferage, and/or damage in transit, it is common that procurement orders may contain defective items. This article deals with a continuous-review inventory system with Poisson demand arrivals and constant resupply time. Items in resupply lots may not be of perfect quality. The operating characteristics of such a system are analyzed. For purposes of computational savings, an approximation scheme for the operating characteristics is presented. As a result of the approximation, the determination of the optimal ordering policy becomes much simpler. Extensive numerical tests suggest that the approximation scheme is very effective in giving the optimal or near-optimal ordering policies for such a system.