Research Initiation: Dynamic Planning and Scheduling for Production and Distribution Systems with Random Demand and Finite Capacity

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9409344 Sox The objectives of this research are to develop mathematical models and solution procedures for dynamically planning and scheduling manufacturing and distribution inventories of multiple products with random demand and finite production capacity. Dynamic implies the planning and scheduling are done in rolling horizon. The production capacity at each stage in a given time period may be augmented in a given time period with overtime or additional shift. The distribution system may be a single finished goods warehouse or a two level system with a central warehouse and multiple, nonidentical retailers. General distributions that account for seasonality and are non-stationary are used. The research seeks to develop benchmarks for evaluating the performance of the developed algorithms both in the quality of the solutions and the time to compute a solution. The models and algorithms developed in this research will offer a methodology to integrate and centralize the planning and scheduling of production and distribution systems. The resulting tools will also provide a means to assess the value of such a planning system. Furthermore, the developed planning and scheduling methodology can supplement just-in-time (JIT) control by leveling out variation in load and mix.