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Time Advances in the Two Stages Problem
Optimal Solution for Normal Lead Times
14 other sections not shown
appendix assume Benetton capacity allocation convex convex function decreases delivery date delivery due dates demand uncertainty demand variance differentiating downstream stages echelon planned lead effect of stage given hence Hessian highly profitable product holding cost in-season production capacity increasing stage incurred instances lead time variance left-hand side less profitable product lower bound marginal needed at stage Newsboy problem Newsboy solution nonnegative normally distributed off-season order quantity off-season quantity optimal due dates optimal off-season order optimal planned lead optimal release optimal solution order condition otherwise overage cost processing at stage product into stage production stage products problem proof Proposition raw materials released into stage result season semi-finished product serial production system shortage cost single product slack solves stage 1 lead stages are pooled substitute supplied part needed underage cost unit of product upper bound variable variance at stage variance reduction X.nl zero