Newsvendor equations for production networks

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Uittreksel

We consider production networks with stochastic activity leadtimes. When activities finish early holding costs are incurred and when end products are delivered late penalty costs are incurred. Objective is to find the activity start and finish times that minimize the total cost. We introduce the concept of a tardy path and derive the optimality equations for each node in the network. We show that under the optimal solution, for a set of nodes the tardiness probability satisfies the Newsvendor equations.

Originele taal-2Engels
Pagina's (van-tot)599-604
Aantal pagina's6
TijdschriftOperations Research Letters
Volume46
Nummer van het tijdschrift6
DOI's
StatusGepubliceerd - 29 okt 2018

Vingerafdruk

Costs
Optimality Equation
Tardiness
Vertex of a graph
Penalty
Optimal Solution
Minimise
Path
Production networks
Newsvendor
Node
Concepts
Optimality
Optimal solution
Lead time

Citeer dit

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Newsvendor equations for production networks. / Jansen, S. W.F.; Atan, Z.; Adan, I. J.B.F.; de Kok, A.G.

In: Operations Research Letters, Vol. 46, Nr. 6, 29.10.2018, blz. 599-604.

Onderzoeksoutput: Bijdrage aan tijdschriftTijdschriftartikelAcademicpeer review

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