Aggregate Planning Based on Stochastic Demand DEA Model With an Application in Production Planning

Gongbing BI, Kun XIANG

Abstract


Market demand and inventory are usually known in traditional DEA-based resource allocation method. However, market demand is always changing according to the market discipline. Thus, it is not rigorous to view market demand as constant. To cope with the uncertain demand, we further develop our mathematical model and impose the normality assumption for the stochastic product demands. In the end, a numerical example with hypothetical production data is used to illustrate the model.


Keywords


Production planning; Resource allocation; Data envelopment analysis (DEA); Stochastic demand

Full Text:

PDF

References


Bertrand, J., & Rutten, W. (1999). Evaluation of three production planning procedures for the use of recipe flexibility. European Journal of Operational Research, 115(1), 179-194.

Charnes, A., Cooper, W. W., & Rhodes, E. (1978). Measuring the efficiency of decision making units. European Journal of Operational Research, 2(6), 429-444.

Cooper, W., Huang, Z., & Li, S. X. (1996). Satisficing DEA models under chance constraints. Annals of Operations Research, 66(4), 279-295.

Du, J., Liang, L., Chen, Y., & Bi, G.-B. (2010). DEA-based production planning. Omega, 38(1), 105-112.

Fisher, M., Ramdas, K., & Zheng, Y.-S. (2001). Ending inventory valuation in multiperiod production scheduling. Management Science, 47(5), 679-692.

Gupta, A., & Maranas, C. D. (2000). A two-stage modeling and solution framework for multisite midterm planning under demand uncertainty. Industrial & Engineering Chemistry Research, 39(10), 3799-3813.

Gupta, A., & Maranas, C. D. (2003). Managing demand uncertainty in supply chain planning. Computers & Chemical Engineering, 27(8), 1219-1227.

Leung, S. C., Wu, Y., & Lai, K. (2003). Multi-site aggregate production planning with multiple objectives: A goal programming approach. Production Planning & Control, 14(5), 425-436.

Nahmias, S. (1989). Production and operations analysis. Irwin, Homewood, IL, 201-206.

Petkov, S. B., & Maranas, C. D. (1998). Design of single-product campaign batch plants under demand uncertainty. AIChE Journal, 44(4), 896-911.

Sodhi, M. S., & Tang, C. S. (2009). Modeling supply-chain planning under demand uncertainty using stochastic programming: A survey motivated by asset–liability management. International Journal of Production Economics, 121(2), 728-738.

Wellons, H. S., & Reklaitis, G. (1989). The design of multiproduct batch plants under uncertainty with staged expansion. Computers & Chemical Engineering, 13(1), 115-126.

Bi, G.-B., Mao, Q.-L., & Ding, J.-J. (2013). Dynamic resource allocation based on DEA with an application in production planning. Journal of University of Electronic Science and Technology of China, 5(15), 46-51.




DOI: http://dx.doi.org/10.3968/6054

Refbacks

  • There are currently no refbacks.


Copyright (c)




Share us to:   


Reminder

  • How to do online submission to another Journal?
  • If you have already registered in Journal A, then how can you submit another article to Journal B? It takes two steps to make it happen:

1. Register yourself in Journal B as an Author

  • Find the journal you want to submit to in CATEGORIES, click on “VIEW JOURNAL”, “Online Submissions”, “GO TO LOGIN” and “Edit My Profile”. Check “Author” on the “Edit Profile” page, then “Save”.

2. Submission

  • Go to “User Home”, and click on “Author” under the name of Journal B. You may start a New Submission by clicking on “CLICK HERE”.


We only use three mailboxes as follows to deal with issues about paper acceptance, payment and submission of electronic versions of our journals to databases:
caooc@hotmail.com; mse@cscanada.net; mse@cscanada.org

 Articles published in Management Science and Engineering are licensed under Creative Commons Attribution 4.0 (CC-BY).

 MANAGEMENT SCIENCE AND ENGINEERING Editorial Office

Address:1020 Bouvier Street, Suite 400, Quebec City, Quebec, G2K 0K9, Canada.

Telephone: 1-514-558 6138
Http://www.cscanada.net Http://www.cscanada.org

Copyright © 2010 Canadian Research & Development Centre of Sciences and Cultures