A queuing approach for inventory planning with batch ordering in multi-echelon supply chains

This paper presents stylized models for conducting performance analysis of the manufacturing supply chain network (SCN) in a stochastic setting for batch ordering. We use queueing models to capture the behavior of SCN. The analysis is clubbed with an inventory optimization model, which can be used for designing inventory policies . In the first case, we model one manufacturer with one warehouse, which supplies to various retailers. We determine the optimal inventory level at the warehouse that minimizes total expected cost of carrying inventory, back order cost associated with serving orders in the backlog queue, and ordering cost. In the second model we impose service level constraint in terms of fill rate (probability an order is filled from stock at warehouse), assuming that customers do not balk from the system. We present several numerical examples to illustrate the model and to illustrate its various features. In the third case, we extend the model to a three-echelon inventory model which explicitly considers the logistics process.

Operations research applications in the plywood industry

There are several areas in the plywood industry where Operations Research techniques have greatly assisted in better decision-making. These have resulted in improved profits, reduction of wood losses and better utilization of resources. Realizing these, some of the plywood manufacturing firms in the developed countries have established separate Operations Research departments or divisions. In the face of limited raw-material resources, raising costs and a competitive environment, the benefits attributable to the use of these techniques are becoming more and more significant.

Models of reserve manpower

Absenteeism is one of the major problems of Indian industries. It necessitates the employment of more manpower than the jobs require, resulting in the increase of manpower costs, and lowers the efficiency of plant operation through lowered performance and higher rejects. It also causes machine idleness, if extra manpower is not hired, resulting in disrupted work schedules and assignments. Several studies have investigated the causes of absenteeism (Vaid 1967) for example and their remedy and relationship between absenteeism and turnover with a suggested model for diagnosis and treatment (Hawk 1976) However, the production foremen and supervisor will face the operating task of determining how many extra operatives are to be hired in order to stave off the adverse effects of absenteeism on the man-machine system. This paper deals with a class of reserve manpower models based on the reject allowance model familiar in quality control literature. The present study considers, in addition to absenteeism, machine failures and the graded nature of manpower met within production systems and seeks to find optimal reserve manpower through computer simulation.

Parallel processor scheduling for minimizing total weighted tardiness using ant colony optimization

In the modern business environment, meeting due dates and avoiding delay penalties are very important goals that can be accomplished by minimizing total weighted tardiness. We consider a scheduling problem in a system of parallel processors with the objective of minimizing total weighted tardiness. Our aim in the present work is to develop an efficient algorithm for solving the parallel processor problem as compared to the available heuristics in the literature and we propose the ant colony optimization approach for this problem. An extensive experimentation is conducted to evaluate the performance of the ACO approach on different problem sizes with the varied tardiness factors. Our experimentation shows that the proposed ant colony optimization algorithm is giving promising results compared to the best of the available heuristics.

Application of Mathematical Programming to the Plywood Design and Manufacturing Problem

Plywood manufacture includes two fundamental stages. The first is to peel or separate logs into veneer sheets of different thicknesses. The second is to assemble veneer sheets into finished plywood products. At the first stage a decision must be made as to the number of different veneer thicknesses to be peeled and what these thicknesses should be. At the second stage, choices must be made as to how these veneers will be assembled into final products to meet certain constraints while minimizing wood loss. These decisions present a fundamental management dilemma. Costs of peeling, drying, storage, handling, etc. can be reduced by decreasing the number of veneer thicknesses peeled. However, a reduced set of thickness options may make it infeasible to produce the variety of products demanded by the market or increase wood loss by requiring less efficient selection of thicknesses for assembly. In this paper the joint problem of veneer choice and plywood construction is formulated as a nonlinear integer programming problem. A relatively simple optimal solution procedure is developed that exploits special problem structure. This procedure is examined on data from a British Columbia plywood mill. Restricted to the existing set of veneer thicknesses and plywood designs used by that mill, the procedure generated a solution that reduced wood loss by 79 percent, thereby increasing net revenue by 6.86 percent. Additional experiments were performed that examined the consequences of changing the number of veneer thicknesses used. Extensions are discussed that permit the consideration of more than one wood species.

Robustness of the partitions in grouping multi-item inventories

A recent work obtained closed-form solutions to the.problem of optimally grouping a multi-item inventory into subgroups with a common order cycle per group, when the distribution by value of the inventory could be described by a Pareto function. This paper studies the sensitivity of the optimal subgroup boundaries so obtained. Closed-form expressions have been developed to find intervals for the subgroup boundaries for any given level of suboptimality. Graphs have been provided to aid the user in selecting a cost-effective level of aggregation and choosing appropriate subgroup boundaries for a whole range of inventory distributions. The results of sensitivity analyses demonstrate the availability of flexibility in the partition boundaries and the cost-effectiveness of any stock control system through three groups, and thus also provide a theoretical support to the intuitive ABC system of classifying the items.

Administrative Reforms: Towards Sustainable Practices by Amita Singh (Ed.)

A key issue on achieving sustainability and sustainable development is through administrative reforms. The book under review, a compilation of ‘good practices’, comes in at a time when the helm of affairs on governance and administrative practices is up for a thorough introspection. This book is a collection of papers presented at the ‘International Conference on Administrative Reforms, Good Practices and their Sustainability’ on 24–25th April 2003 at New Delhi.

Universalization of access to modern energy services in Indian households-Economic and policy analysis

Provision of modern energy services for cooking (with gaseous fuels)and lighting (with electricity) is an essential component of any policy aiming to address health, education or welfare issues; yet it gets little attention from policy-makers. Secure, adequate, low-cost energy of quality and convenience is core to the delivery of these services. The present study analyses the energy consumption pattern of Indian domestic sector and examines the urban-rural divide and income energy linkage. A comprehensive analysis is done to estimate the cost for providing modern energy services to everyone by 2030. A public-private partnership-driven business model, with entrepreneurship at the core, is developed with institutional, financing and pricing mechanisms for diffusion of energy services. This approach, termed as EMPOWERS (entrepreneurship model for provision of wholesome energy-related basic services), if adopted, can facilitate large-scale dissemination of energy-efficient and renewable technologies like small-scale biogas/biofuel plants, and distributed power generation technologies to provide clean, safe, reliable and sustainable energy to rural households and urban poor. It is expected to integrate the processes of market transformation and entrepreneurship development involving government, NGOs, financial institutions and community groups as stakeholders. (C) 2009 Elsevier Ltd. All rights reserved.

A solution framework for scheduling a BPM with non-identical job dimensions

A Batch Processing Machine (BPM) is one which processes a number of jobs simultaneously as a batch with common beginning and ending times. Also, a BPM, once started cannot be interrupted in between (Pre-emption not allowed). This research is motivated by a BPM in steel casting industry. There are three main stages in any steel casting industry viz., pre-casting stage, casting stage and post-casting stage. A quick overview of the entire process, is shown in Figure 1. There are two BPMs : (1) Melting furnace in the pre-casting stage and (2) Heat Treatment Furnace (HTF) in the post casting stage of steel casting manufacturing process. This study focuses on scheduling the latter, namely HTF. Heat-treatment operation is one of the most important stages of steel casting industries. It determines the final properties that enable components to perform under demanding service conditions such as large mechanical load, high temperature and anti-corrosive processing. In general, different types of castings have to undergo more than one type of heat-treatment operations, where the total heat-treatment processing times change. To have a better control, castings are primarily classified into a number of job-families based on the alloy type such as low-alloy castings and high alloy castings. For technical reasons such as type of alloy, temperature level and the expected combination of heat-treatment operations, the castings from different families can not be processed together in the same batch.

The process of technological innovations in small enterprises: the Indian way

This paper probes how two small foundries in Belgaum, Karnataka State, India, have achieved technological innovations successfully based on their technological capability and customer needs, enabling them to sail through the competitive environment. This study brought out that technically qualified entrepreneurs of both the foundries have carried out technological innovations, mainly due to their self-motivation and self-efforts. Changing product designs, as desired or directed by the customers, cost reduction, quality improvement and import substitution through reverse engineering are the characteristics of these technological innovations. These incremental innovations have enabled the entrepreneurs of the two foundries to enhance competitiveness, grow in the domestic market and penetrate the international market and grow in size over time.

The process of technological innovations in small enterprises: the Indian way

This paper probes how two small foundries in Belgaum, Karnataka State, India, have achieved technological innovations successfully based on their technological capability and customer needs, enabling them to sail through the competitive environment. This study brought out that technically qualified entrepreneurs of both the foundries have carried out technological innovations, mainly due to their self-motivation and self-efforts. Changing product designs, as desired or directed by the customers, cost reduction, quality improvement and import substitution through reverse engineering are the characteristics of these technological innovations. These incremental innovations have enabled the entrepreneurs of the two foundries to enhance competitiveness, grow in the domestic market and penetrate the international market and grow in size over time.

Fusion of Multisensor Data:Review and Comparative Analysis

Image fusion is a formal framework which is expressed as means and tools for the alliance of multisensor, multitemporal, and multiresolution data. Multisource data vary in spectral, spatial and temporal resolutions necessitating advanced analytical or numerical techniques for enhanced interpretation capabilities. This paper reviews seven pixel based image fusion techniques - intensity-hue-saturation, brovey, high pass filter (HPF), high pass modulation (HPM), principal component analysis, fourier transform and correspondence analysis.Validation of these techniques on IKONOS data (Panchromatic band at I m spatial resolution and Multispectral 4 bands at 4 in spatial resolution) reveal that HPF and HPM methods synthesises the images closest to those the corresponding multisensors would observe at the high resolution level.

A Fair Contract for Managing Water Scarcity

In public utilities, under supply constraints, fairness considerations lead to a market failure. This paper characterizes a two-period principal-agent contract for demand management, that mitigates this market failure in urban water systems. The contract is designed as an extensive form mechanism using subgame perfect Nash equilibrium (SPNE) as the solution concept. The contract is fair; and is shown to be economically efficient if, in case of deviation by the agent, the gain to the agent and the loss to the principal are small. It is shown that the assumption can be avoided in an infinite horizon contract.