Multi-stage production planning and inventory control. (Workshop held at the University of Mannheim, Germany, October 1985) (Q1075938)

The book contains all the 12 papers of a workshop which was held at the University of Mannheim, Germany, in October 1985. The papers deal with the following three main topics: Safety stocks and lot-sizing in inventory production and distribution systems; multi-stage lot-sizing for assemblage and general product structure; and practical applications and hierarchical integration problems. The first paper by Schneeweiss is a short summary of the proceedings and may as well serve as an excellent survey of recent advances in multi- stage production planning. The next four papers concern inventory- production and distribution systems. In the first of these Graves et al. present mathematical models for production smoothing in a dynamic production environment. The smoothing is done at an aggregate level for a two stage production system. A mechanism is given for disaggregating the aggregate output into production levels for individual items, and the tradeoff between the smoothness of aggregate production and the safety stocks is quantified. Next, Jönsson and Silver consider the allocation of inventories for a single item in a two-echelon inventory system with one central warehouse and n identical regional warehouses. Luyten investigates a two-echelon distribution system. Several heuristics, based on the echelon stock concept, are proposed and tested. Finally Gelders et al. present a branch and bound algorithm for the multi item single level capacitated dynamic lot-sizing problem. The second part of the book contains four papers on multi-stage lot- sizing. First, Axsäter and Nuttle present a basically simple way of reducing a multi-level lot-sizing problem for assembly structures. An assembly system is also investigated in the paper by Rosling who provides a highly effective branch and bound procedure for optimal lot-sizing. Next, Muckstadt develops an algorithm that can be used to establish the time between external procurements and between movement of stock from stage to stage in a multi-stage assembly system recognizing handling and storage constraints. For general production systems Heinrich and Schneeweiss present a lot-sizing algorithm based on the observation that the multi-stage character of a system should be incorporated into a model considering only constant demand. Time varying demand can then be taken into account on a one-stage basis. The last part consists of three papers on practical applications and hierarchical integration problems. The paper by Donselaar and Wijngaard deals with the question of locating and sizing safety stocks between two main production levels. Next, Stadtler describes a hierarchical production planning system devised for a major German food manufacturer, and shows that aggregate LP-models based on ''effective demand'' data for product aggregates may not allow adequate lot sizing and sequencing decisions. In the last paper Günther discusses the design of a hierarchical model for production planning and scheduling in a special case study. The overall decision problem is partitioned into four levels and heuristic procedures are developed for all sub-problems. New theoretical results presented in the book are of great importance in view of the currently available software for production planning and inventory control. Therefore the book may serve as a valuable source of reference for researchers and professionals active in the area.