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Developing Customer Order Penetration Point within Production Lines, Newsvendor Supply Chains, and Supply Chains with Demand Uncertainties in Two Consecutive Echelons

Ghalehkhondabi, Iman
http://rave.ohiolink.edu/etdc/view?acc_num=ohiou1500055043949766

Abstract Details

2017, Doctor of Philosophy (PhD), Ohio University, Mechanical and Systems Engineering (Engineering and Technology).
Demand uncertainty has been an important obstacle in production systems and supply chains in recent decades. This uncertainty in demand has stimulated many researchers and practitioners to find new ways--such as combining Make to Stock (MTS) and Make to Order (MTO) manufacturing systems--to handle the uncertainty problem. In this research, applying the hybrid MTS/MTO system is developed in three different manufacturing frameworks. The first framework considers a production line, which produces semi-finished products based on a Make To Stock (MTS) strategy until a specific process is finished, and operates based on a Make To Order (MTO) strategy after this process. Two scenarios are studied in the first model: 1- In the first Scenario, the production line applies the MTO strategy after the OPP, which leads to an idleness cost when there is no order in the system. 2- In the second Scenario, the production line either applies the MTO strategy or the MTS strategy after the OPP, based on the presence of an order for semi-finished products in the line. This second scenario comprises the holding cost of completed products on MTS strategy, but does not have an idle cost. The second framework considers the demand uncertainties in two consecutive echelons of a supply chain--unlike most of the field research--which has only focused on the final customer’s demand uncertainty. In order to decrease the operating costs of a manufacturer, a model is proposed to use hybrid manufacturing in two different levels of a supply chain with two echelons of manufacturers. The output of the presented model is the quantity of semi-finished products ordered by the decoupling point upstream manufacturer. The third problem studies a multi-product, two-echelon supply chain within a newsvendor framework, in which semi-finished products are produced by a supplier and customized according to specific customer orders. The focus of this paper is to investigate a situation where the manufacturer wishes to determine the fraction of production performed by the supplier, its optimal semi-finished product order size, and the price for each product type. In order to make the problem more practical, capacity and budget constraints are considered.
Gary Weckman (Advisor)
William Young (Committee Member)
Dale Masel (Committee Member)
Benjamin Sperry (Committee Member)
Yong Wang (Committee Member)
172 p.
Business Costs; Industrial Engineering; Management; Marketing
Make to Stock; Make to Order; Hybrid Manufacturing; Queueing Theory; Inventory Management

Recommended Citations

Citations

  • Ghalehkhondabi, I. (2017). Developing Customer Order Penetration Point within Production Lines, Newsvendor Supply Chains, and Supply Chains with Demand Uncertainties in Two Consecutive Echelons [Doctoral dissertation, Ohio University]. OhioLINK Electronic Theses and Dissertations Center. http://rave.ohiolink.edu/etdc/view?acc_num=ohiou1500055043949766

    APA Style (7th edition)

  • Ghalehkhondabi, Iman. Developing Customer Order Penetration Point within Production Lines, Newsvendor Supply Chains, and Supply Chains with Demand Uncertainties in Two Consecutive Echelons. 2017. Ohio University, Doctoral dissertation. OhioLINK Electronic Theses and Dissertations Center, http://rave.ohiolink.edu/etdc/view?acc_num=ohiou1500055043949766.

    MLA Style (8th edition)

  • Ghalehkhondabi, Iman. "Developing Customer Order Penetration Point within Production Lines, Newsvendor Supply Chains, and Supply Chains with Demand Uncertainties in Two Consecutive Echelons." Doctoral dissertation, Ohio University, 2017. http://rave.ohiolink.edu/etdc/view?acc_num=ohiou1500055043949766

    Chicago Manual of Style (17th edition)

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This open access ETD is published by Ohio University and OhioLINK.