Setting Inventory Levels of CONWIP Flow Lines via Linear Programming

This paper treats the problem of setting the inventory level and optimizing the buffer allocation of closed-loop flow lines operating under the constant-work-in-process (CONWIP) protocol. We solve a very large but simple linear program that models an entire simulation run of a closed-loop flow line in discrete time to determine a production rate estimate of the system. This approach introduced in Helber, Schimmelpfeng, Stolletz, and Lagershausen (2011) for open flow lines with limited buffer capacities is extended to closed-loop CONWIP flow lines. Via this method, both the CONWIP level and the buffer allocation can be optimized simultaneously. The first part of a numerical study deals with the accuracy of the method. In the second part, we focus on the relationship between the CONWIP inventory level and the short-term profit. The accuracy of the method turns out to be best for such configurations that maximize production rate and/or short-term profit.

On Transport Service Selection in Intermodal Rail/Road Distribution Networks

Intermodal rail/road freight transport constitutes an alternative to long-haul road transport for the distribution of large volumes of goods. The paper introduces the intermodal transportation problem for the tactical planning of mode and service selection. In rail mode, shippers either book train capacity on a per-unit basis or charter block trains completely. Road mode is used for short-distance haulage to intermodal terminals and for direct shipments to customers. We analyze the competition of road and intermodal transportation with regard to freight consolidation and service cost on a model basis. The approach is applied to a distribution system of an industrial company serving customers in eastern Europe. The case study investigates the impact of transport cost and consolidation on the optimal modal split.