Management of a high mix production system with interdependent demands : modeling of stochastic demands and the concept of virtual profit as a decomposition tool
Name
611950615-MIT.pdf
Description
Full printable version
Size
18.11 MB
Format
Adobe PDF
Checksum (MD5)
85929b1923e7edcfe1e560cb9a4ea97b
Author(s)
Serra, Maria Carolina
Advisor(s)
Stanley B. Gershwin.
Date Issued
2009
Publisher
Massachusetts Institute of Technology
Abstract
An optimized framework for the inventory control of a high mix production system has been designed in order to guarantee the optimal mix of items in stock in presence of correlated demands. The Virtual Profit concept was developed to measure the criticality of an item in presence of correlated demands. The introduction of the Virtual Profit in the optimization problem allowed the problem to be decomposed and the optimal control parameters to be computed separately. Demands were modeled based on the stochastic properties of the historical demand so that simulations could be performed using statistically generated orders. The simulations provided a validation of the proposed technique showing that, with the same size of inventory, considering the Virtual Profits instead of the real profits improves the quality of the solution, especially when low levels of inventory are kept.
Description
Thesis (M. Eng.)--Massachusetts Institute of Technology, Dept. of Mechanical Engineering, 2009.
Cataloged from PDF version of thesis.
Includes bibliographical references (p. 124-126).
Subjects
Mechanical Engineering.
MIT Department
Massachusetts Institute of Technology. Department of Mechanical Engineering
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