Comparative modeling of multi-stage production-inventory control policies with lot sizing and advance demand information

Abstract

We present a unified framework, which is based on a queuing network modeling representation, for describing, comparing and contrasting simple and hybrid multi-stage productioninventory control policies with lot-sizing and advance demand information (ADI). The simple policies that we consider are reorder point and kanban policies. The hybrid policies are combinations of the simple policies, which can be materialized in a synchronized or an independent way, leading to synchronized and independent hybrid policies, respectively. We then, attempt to describe their basic operations and functions, emphasizing on their advantages and disadvantages. Wherever it is possible, we develop evolution equations, so as to describe in detail the dynamics of each system. Using the above analysis we attempt a comparison of the above systems, emphasizing in equivalencies and superiorities. We consider two cases where in the first, ADI is available and in the second isn’t. The above analysis is carried out for both cases.