Title :
Optimal Policy for Manufacturer in a Supply Chain with Stochastic Demand
Author :
Shen, Tiesong ; Lu, Xunzhi ; Wu, Bingshan
Author_Institution :
Dept. of Econ., Chongqing Radio &TV Univ., Chongqing, China
Abstract :
An optimal policy is put forward for a supply chain system with uncertain demand, consisting of one supplier, one manufacturer and continuously stochastic demand market. By employing a newsvendor model, this paper builds a mathematic programming and designs an algorithm to obtain the optimal production start time and uptime in the supply chain with timely random demand. It is implied with uncertain demand the optimal production start time is not always the starting point of a cycle. Manufacturing postponement is effective to reduce the total cost.
Keywords :
mathematical programming; random processes; stochastic processes; supply and demand; supply chain management; continuously stochastic demand market; manufacturer optimal policy; manufacturing postponement; mathematical programming; newsvendor model; optimal production start time; optimal production uptime; supply chain management; timely random demand; uncertain demand; Algorithm design and analysis; Costs; Manufacturing; Mathematical model; Mathematical programming; Mathematics; Production; Stochastic processes; Stochastic systems; Supply chains; Stochastic Demand; optimal production; supply chain;
Conference_Titel :
Computational Sciences and Optimization, 2009. CSO 2009. International Joint Conference on
Conference_Location :
Sanya, Hainan
Print_ISBN :
978-0-7695-3605-7
DOI :
10.1109/CSO.2009.319
