Inventory policies in dual sourcing systems with uncertain yield

Adriana F. Gabor; Andrei Sleptchenko

doi:10.1007/978-3-319-93800-4_23

Inventory policies in dual sourcing systems with uncertain yield

Research output: Chapter in Book/Report/Conference proceeding › Conference contribution › peer-review

2 Scopus citations

Abstract

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.

Original language	British English
Title of host publication	Optimization Problems and Their Applications - 7th International Conference, OPTA 2018, Revised Selected Papers
Editors	Michael Khachay, Yury Kochetov, Anton Eremeev, Panos Pardalos, Panos Pardalos
Publisher	Springer Verlag
Pages	288-295
Number of pages	8
ISBN (Print)	9783319937991
DOIs	https://doi.org/10.1007/978-3-319-93800-4_23
State	Published - 2018
Event	7th International Conference on Optimization Problems and Their Applications, OPTA 2018 - Omsk, Russian Federation Duration: 8 Jun 2018 → 14 Jun 2018

Publication series

Name	Communications in Computer and Information Science
Volume	871
ISSN (Print)	1865-0929

Conference

Conference	7th International Conference on Optimization Problems and Their Applications, OPTA 2018
Country/Territory	Russian Federation
City	Omsk
Period	8/06/18 → 14/06/18

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

SDG 9 Industry, Innovation, and Infrastructure

Keywords

Additive manufacturing
Dual sourcing
Markov-Decision Processes
Spare part logistics

Access to Document

10.1007/978-3-319-93800-4_23

OpenUrl availability

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Gabor, A. F., & Sleptchenko, A. (2018). Inventory policies in dual sourcing systems with uncertain yield. In M. Khachay, Y. Kochetov, A. Eremeev, P. Pardalos, & P. Pardalos (Eds.), Optimization Problems and Their Applications - 7th International Conference, OPTA 2018, Revised Selected Papers (pp. 288-295). (Communications in Computer and Information Science; Vol. 871). Springer Verlag. https://doi.org/10.1007/978-3-319-93800-4_23

Gabor, Adriana F. ; Sleptchenko, Andrei. / Inventory policies in dual sourcing systems with uncertain yield. Optimization Problems and Their Applications - 7th International Conference, OPTA 2018, Revised Selected Papers. editor / Michael Khachay ; Yury Kochetov ; Anton Eremeev ; Panos Pardalos ; Panos Pardalos. Springer Verlag, 2018. pp. 288-295 (Communications in Computer and Information Science).

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abstract = "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.",

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Gabor, AF & Sleptchenko, A 2018, Inventory policies in dual sourcing systems with uncertain yield. in M Khachay, Y Kochetov, A Eremeev, P Pardalos & P Pardalos (eds), Optimization Problems and Their Applications - 7th International Conference, OPTA 2018, Revised Selected Papers. Communications in Computer and Information Science, vol. 871, Springer Verlag, pp. 288-295, 7th International Conference on Optimization Problems and Their Applications, OPTA 2018, Omsk, Russian Federation, 8/06/18. https://doi.org/10.1007/978-3-319-93800-4_23

Inventory policies in dual sourcing systems with uncertain yield. / Gabor, Adriana F.; Sleptchenko, Andrei.
Optimization Problems and Their Applications - 7th International Conference, OPTA 2018, Revised Selected Papers. ed. / Michael Khachay; Yury Kochetov; Anton Eremeev; Panos Pardalos; Panos Pardalos. Springer Verlag, 2018. p. 288-295 (Communications in Computer and Information Science; Vol. 871).

Research output: Chapter in Book/Report/Conference proceeding › Conference contribution › peer-review

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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.

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Gabor AF , Sleptchenko A. Inventory policies in dual sourcing systems with uncertain yield. In Khachay M, Kochetov Y, Eremeev A, Pardalos P, Pardalos P, editors, Optimization Problems and Their Applications - 7th International Conference, OPTA 2018, Revised Selected Papers. Springer Verlag. 2018. p. 288-295. (Communications in Computer and Information Science). doi: 10.1007/978-3-319-93800-4_23

Inventory policies in dual sourcing systems with uncertain yield

Abstract

Publication series

Conference

UN SDGs

Keywords

Access to Document

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