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Strategic marketing, production, and distribution planning of an integrated manufacturing system

Author: Van Wassenhove, Luk N. ; Ashayeri, Jalal ; Pourbabai, BehnamINSEAD Area: Technology and Operations Management Series: Working Paper ; 92/47/TM Publisher: Fontainebleau : INSEAD, 1992.Language: EnglishDescription: 18 p.Type of document: INSEAD Working Paper Online Access: Click here Abstract: This paper extends Pourbabai's (1991) results for generating a strategic marketing and production plan for an Integrated Manufacturing System (IMS) to include distribution decisions. The paper introduces additional distribution decision variables and constraints for both of loading models proposed by Pourbabai (1991). The new models optimize the utilization of the processing capabilities of an IMS consisting of a set of heterogeneous workstations. The objective to be maximized includes the fixed and variable market values of each job, the fixed and variable processing costs of each job, the setup costs, and the fixed and variable distribution costs. Each job requires a single aggregated stage of operation; job splitting is allowed; and the processing priorities of all jobs during the planning time horizon are given. Setup times collapsing is also allowed, to shorten the completion times of some jobs. The proposed models are fixed charge problems which can be solved by a mixed integer programming algorit.
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This paper extends Pourbabai's (1991) results for generating a strategic marketing and production plan for an Integrated Manufacturing System (IMS) to include distribution decisions. The paper introduces additional distribution decision variables and constraints for both of loading models proposed by Pourbabai (1991). The new models optimize the utilization of the processing capabilities of an IMS consisting of a set of heterogeneous workstations. The objective to be maximized includes the fixed and variable market values of each job, the fixed and variable processing costs of each job, the setup costs, and the fixed and variable distribution costs. Each job requires a single aggregated stage of operation; job splitting is allowed; and the processing priorities of all jobs during the planning time horizon are given. Setup times collapsing is also allowed, to shorten the completion times of some jobs. The proposed models are fixed charge problems which can be solved by a mixed integer programming algorit.

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