TY - JOUR
T1 - Improving the design of stochastic production lines
T2 - An approach using perturbation analysis
AU - Donohue, K. L.
AU - Spearman, M. L.
N1 - Funding Information:
Acknowledgment This research has been supported in part by Grant No. DDM-8905638 from the National Science Foundation.
PY - 1993/12
Y1 - 1993/12
N2 - With the recent increase in expense and specialization of equipment, capacity decisions have taken on greater significance. As a result, companies are in need of a better understanding of the investment tradeoffs. In this paper, we examine the problem of determining the most profitable capacity configuration for a production line modelled as a series of single-server stations. In the context of a constant work-in-process (CONWIP) control system, an algorithm is developed for solving the general problem using a single-run simulation procedure. Various market structures are examined and sensitivity analysis is performed on the cost of capacity, quality and the amount of work-in-process allowed in the system.
AB - With the recent increase in expense and specialization of equipment, capacity decisions have taken on greater significance. As a result, companies are in need of a better understanding of the investment tradeoffs. In this paper, we examine the problem of determining the most profitable capacity configuration for a production line modelled as a series of single-server stations. In the context of a constant work-in-process (CONWIP) control system, an algorithm is developed for solving the general problem using a single-run simulation procedure. Various market structures are examined and sensitivity analysis is performed on the cost of capacity, quality and the amount of work-in-process allowed in the system.
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U2 - 10.1080/00207549308956900
DO - 10.1080/00207549308956900
M3 - Article
AN - SCOPUS:0027845080
SN - 0020-7543
VL - 31
SP - 2789
EP - 2806
JO - International Journal of Production Research
JF - International Journal of Production Research
IS - 12
ER -