NDLI: Periodic capacity management under a lead-time performance constraint

Content Provider	Springer Nature Link
Author	Buyukkaramikli, Nasuh C. Bertrand, J. Will M. Ooijen, Henny P. G.
Copyright Year	2011
Abstract	In this paper, we study a production system that operates under a lead-time performance constraint which guarantees the completion of an order before a pre-determined lead-time with a certain probability. The demand arrival times and the service requirements for the orders are random. To reduce the capacity-related operational costs, the production system under study has the option to use flexible capacity. We focus on periodic capacity policies and model the production system as a queuing system that can change its capacity periodically and choose to operate in one of the two levels: a permanent capacity level and a permanent plus contingent capacity level. Contingent capacity is supplied if needed at the start of a period, and is available during that period, at a cost rate that is decreasing in period length in different functional forms. Next, we propose a search algorithm that finds the capacity levels and the switching point that minimizes the capacity-related costs for a given period length. The behaviour of the capacity-related costs changes drastically under different period lengths and cost structures. In our computational study, we observe that the periodic capacity flexibility can reduce the capacity-related operational costs significantly (up to 35%). However, in order to achieve these savings, the period length must be chosen carefully depending on ambition level and capacity-related costs. We also observe that the percentage savings are higher for more ambitious lead-time performance constraints. Moreover, we observe that the use of contingent capacity makes the total system costs more insensitive to the lead-time performance requirements.
Starting Page	221
Ending Page	249
Page Count	29
File Format	PDF
ISSN	01716468
Journal	OR Spectrum
Volume Number	35
Issue Number	1
e-ISSN	14366304
Language	English
Publisher	Springer-Verlag
Publisher Date	2011-06-30
Publisher Place	Berlin, Heidelberg
Access Restriction	One Nation One Subscription (ONOS)
Subject Keyword	Production control Capacity management Lead-time management Queuing theory Transient analysis Operations Research/Decision Theory Calculus of Variations and Optimal Control; Optimization Business/Management Science
Content Type	Text
Resource Type	Article
Subject	Management Science and Operations Research Business, Management and Accounting

Sl.	Authority	Responsibilities	Communication Details
1	Ministry of Education (GoI), Department of Higher Education	Sanctioning Authority	https://www.education.gov.in/ict-initiatives
2	Indian Institute of Technology Kharagpur	Host Institute of the Project: The host institute of the project is responsible for providing infrastructure support and hosting the project	https://www.iitkgp.ac.in
3	National Digital Library of India Office, Indian Institute of Technology Kharagpur	The administrative and infrastructural headquarters of the project	Dr. B. Sutradhar bsutra@ndl.gov.in
4	Project PI / Joint PI	Principal Investigator and Joint Principal Investigators of the project	Dr. B. Sutradhar bsutra@ndl.gov.in Prof. Saswat Chakrabarti will be added soon
5	Website/Portal (Helpdesk)	Queries regarding NDLI and its services	support@ndl.gov.in
6	Contents and Copyright Issues	Queries related to content curation and copyright issues	content@ndl.gov.in
7	National Digital Library of India Club (NDLI Club)	Queries related to NDLI Club formation, support, user awareness program, seminar/symposium, collaboration, social media, promotion, and outreach	clubsupport@ndl.gov.in
8	Digital Preservation Centre (DPC)	Assistance with digitizing and archiving copyright-free printed books	dpc@ndl.gov.in
9	IDR Setup or Support	Queries related to establishment and support of Institutional Digital Repository (IDR) and IDR workshops	idr@ndl.gov.in

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