Dong-Ping Song. Optimal Control and Optimization. of Stochastic. Supply Chain Systems. 4^ Springer

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1 Dong-Ping Song Optimal Control and Optimization Supply Chain Systems of Stochastic 4^ Springer

2 Contents 1 Stochastic Supply Chain Systems Introduction Uncertainties'in Supply Chain Systems Channel Relationships in Supply Chain Systems Optimal Control and Optimization in Stochastic Supply Chains Structure of the Book 6 References 8 2 Optimal Control of Basic Integrated Supply Chains Introduction Problem Formulation Optimal Control Policy Structural Properties of the Value Function Characterization of Optimal Policy Discussions Interpretation and Extension Information Sharing Channel Coordination Cost and Benefit Sharing Notes 32 References 33 3 Optimal Control of Supply Chains in More General Situations Introduction One Outstanding Order with Its Size Not Changeable Once Issued Two Outstanding Orders with Their Sizes Not Changeable Once Issued One Outstanding Order with Its Size Not Changeable and Its Lead Time Following an Erlang Distribution 44 XV

3 xvi Contents 3.5 Numerical Examples Multistage Serial Supply Chain Systems Discussions and Notes Deterministic Lead Times and Random Demands Stochastic Lead Times and Outstanding Orders Multiple Replenishment Channels and Order Information Ordering Capacity and Storage Capacity 56 References 57 4 Optimal Control of Supply Chain Systems with Backordering Decisions Introduction Optimal Control in a Supply Chain with Backordering Decisions Optimal Control in a Failure-Prone Manufacturing Supply Chain with Backordering Decisions Problem Formulation Optimal Control Policy Characterization of the Optimal Policy Discussions and Notes Backordering Decisions Failure-Prone Manufacturing Supply Chains 75 References 76 5 Optimal Control of Supply Chain Systems with Preventive Maintenance Decisions Introduction Optimal Control of Ordering, Production, and Preventive Maintenance in a Supply Chain Optimal Control Under Operation-Dependent Failures Optimal Control Under Time-Dependent Failures Optimal Control of Production and Preventive Maintenance in a Failure-Prone Manufacturing Supply Chain Discussion and Notes 90 References 93 6 Optimal Control of Supply Chain Systems with Assembly Operation Introduction Problem Formulation Optimal Control Policy Optimal Control Policy with Maximum Order Size One Structural Properties of Optimal Value Function Characterization of the Optimal Policy The Failure-Prone Assembly Supply Chain Discussion and Notes 108 References 109

4 Contents xvii 7 Optimal Control of Supply Chain Systems with Multiple Products.. Ill 7.1 Introduction Ill 7.2 Optimal Ordering and Production Control in a Supply Chain with Multiple Products Optimal Production Rate Allocation in a Failure-Prone Manufacturing Supply Chain Producing Two Part-Types Structural Properties of the Optimal Value Function Characterization of the Optimal Policy Discussion and Notes 125 References Threshold-Type Control Policies and System Stability for Serial Supply Chain Systems Introduction Stability Conditions and the Long-Run Average Cost Case Threshold Control Policies in the Basic Supply Chain System Threshold Control Policies in More General Supply Chain Systems Supply Chain Systems Subject to One Non-changeable Outstanding Order Supply Chain Systems with Two Parallel Outstanding Orders Supply Chain Systems Subject to Erlang Distributed Lead Times Numerical Examples in More General Supply Chain Systems Threshold Control Policy for Multistage Serial Supply Chains Discussion and Notes 146 References Threshold-Type Control of Supply Chain Systems with Backordering Decisions Introduction Threshold Control in the Basic Serial Supply Chain with Backordering Decisions Threshold Control in a Failure-Prone Manufacturing Supply Chain with Backordering Decisions System Stability and the Long-Run Average Cost Stationary Distribution Steady-State Performance Measures Numerical Examples Notes 160 References 160

5 xviii Contents 10 Threshold-Type Control of Supply Chain Systems with Preventive Maintenance Decisions System Stability Threshold-Type Control for Ordering, Production, and Preventive Maintenance in a Supply Chain Threshold-Type Control for Production and Preventive Maintenance in a Manufacturing Supply Chain Without Raw Material Ordering Activity State Transition Map Under Type-One Threshold Policy Stationary Distribution Under Type-One Threshold Policy Steady-State Performance Measures Numerical Examples Notes 182 References Threshold-Type Control of Supply Chain Systems with Assembly Operations System Stability Threshold Control Policies for Reliable Assembly Supply Chains Illustration of the Switching Structure of the Optimal Policy Threshold Control Policies Effectiveness of Threshold Control Policies Threshold Control Policies for Failure-Prone Assembly Supply Chains Illustration of the Switching Structure of the Optimal Policy Threshold Control Policies Effectiveness of Threshold Control Policies Notes 197 References Threshold-Type Control of Supply Chain Systems with Multiple Products System Stability ' Threshold-Type Control for Ordering and Production in a Supply Chain with Multiple Products Threshold-Type Control for Production Rate Allocation in a Failure-Prone Manufacturing Supply Chain with Two Part-Types Prioritized Base-Stock Threshold Control for a Manufacturing Supply Chain Producing Two Part-Types with Given Priority System Stability 209

6 Contents xix Stationary Distribution Steady-State Performance Measures Optimal Base-Stock Levels Numerical Examples Discussion and Notes 222 References Optimization of Threshold Control Parameters via Numerical Methods Introduction Optimization of Threshold Parameters in Discounted- Cost Situations Optimization of Threshold Values via Value Iteration Method Application and Computational Performance Optimization of Threshold Parameters in Long-Run Average Cost Situations Optimization of Threshold Parameters via Value Iteration Method Optimization of Threshold Parameters via Stationary Distribution Application and Computational Performance Robustness of Threshold-Type Control Policies Discussion and Notes 235 References Optimization of Threshold Control Parameters via Simulation-Based Methods Introduction Performance Evaluation Through an Event-Driven Simulation Model Simulation-Based Optimization Methods Genetic Algorithms (Evolutionary Strategy) Simulated Annealing Numerical Examples Ordinal Optimization Technique The Concept of Ordinal Optimization An OO-Based Elite GA Notes 256 References Conclusions Conclusions and Managerial Insights Limitations and Further Research 263 References 265 Index 267

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