TY - GEN
T1 - Inventory policies in dual sourcing systems with uncertain yield
AU - Gabor, Adriana F.
AU - Sleptchenko, Andrei
N1 - Publisher Copyright:
© Springer International Publishing AG, part of Springer Nature 2018.
PY - 2018
Y1 - 2018
N2 - We study a spare part supply system where both Traditional Manufacturing and Additive Manufacturing (also know as 3D printing) are used for replenishment of the spare parts inventories. Demands for the spare parts occur according to a Poisson process, and the failed parts are immediately replaced from the inventory, if available. If inventory is not available, items are backordered and fulfilled when a spare becomes available (i.e., a replenishment is received from one of the suppliers). Additive Manufacturing offers the advantage of shorter lead times, however, at higher production costs. Moreover, Additive Manufacturing processes often have uncertain yield, leading to the fact that not every produced part will satisfy the quality control and can be used to replenish the inventory. In this paper, we propose a Linear Programming (LP) based optimization problem that decides which of the processes to use for replenishment of the inventory while minimizing the total (holding + backorder) system costs.
AB - We study a spare part supply system where both Traditional Manufacturing and Additive Manufacturing (also know as 3D printing) are used for replenishment of the spare parts inventories. Demands for the spare parts occur according to a Poisson process, and the failed parts are immediately replaced from the inventory, if available. If inventory is not available, items are backordered and fulfilled when a spare becomes available (i.e., a replenishment is received from one of the suppliers). Additive Manufacturing offers the advantage of shorter lead times, however, at higher production costs. Moreover, Additive Manufacturing processes often have uncertain yield, leading to the fact that not every produced part will satisfy the quality control and can be used to replenish the inventory. In this paper, we propose a Linear Programming (LP) based optimization problem that decides which of the processes to use for replenishment of the inventory while minimizing the total (holding + backorder) system costs.
KW - Additive manufacturing
KW - Dual sourcing
KW - Markov-Decision Processes
KW - Spare part logistics
UR - http://www.scopus.com/inward/record.url?scp=85049676456&partnerID=8YFLogxK
U2 - 10.1007/978-3-319-93800-4_23
DO - 10.1007/978-3-319-93800-4_23
M3 - Conference contribution
AN - SCOPUS:85049676456
SN - 9783319937991
T3 - Communications in Computer and Information Science
SP - 288
EP - 295
BT - Optimization Problems and Their Applications - 7th International Conference, OPTA 2018, Revised Selected Papers
A2 - Khachay, Michael
A2 - Kochetov, Yury
A2 - Eremeev, Anton
A2 - Pardalos, Panos
A2 - Pardalos, Panos
PB - Springer Verlag
T2 - 7th International Conference on Optimization Problems and Their Applications, OPTA 2018
Y2 - 8 June 2018 through 14 June 2018
ER -
