Complex Production-Inventory Replenishment Problem With Uncertainty in Customer Behaviour

A flow-shop production-inventory system can become very complex in terms of production planning and scheduling. One of the causes of complexity in such a system is the uncertainty of customer demand behaviour which disrupts production lines and inventory control. The uncertainty in customer demand b...

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Main Authors: Tunde Adediran, Ammar Al-Bazi
Format: Article
Language:English
Published: University of Novi Sad, Faculty of Technical Sciences 2022-12-01
Series:International Journal of Industrial Engineering and Management
Subjects:
Online Access:http://www.ijiemjournal.uns.ac.rs/images/journal/volume13/IJIEM_318.pdf
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author Tunde Adediran
Ammar Al-Bazi
author_facet Tunde Adediran
Ammar Al-Bazi
author_sort Tunde Adediran
collection DOAJ
description A flow-shop production-inventory system can become very complex in terms of production planning and scheduling. One of the causes of complexity in such a system is the uncertainty of customer demand behaviour which disrupts production lines and inventory control. The uncertainty in customer demand behaviour that causes production disruptions can be in the form of order cancellation, change in order delivery sequence and due time. In general, such disruptions cause order shortages, late order delivery, and the underperformance of resources, amongst others. This paper considers the random combination of occurrences of these disruptions under different production scenario problems. An innovative framework that embeds agent-based simulation, heuristic algorithm, and inventory replenishment strategy is proposed to tackle these disruption problems. The integration of these methods formed a robust platform for adapting and accommodating disruptions with minimum impact on production operations. An experimental study is performed, and the results determine the impact of disruptions under different demand and inventory statuses. An inventory replenishment method is compared with sequential and instantaneous replenishment methods to establish the significance of the proposed method. The proposed method outperformed the sequential and instantaneous methods in terms of the total number of late or unsatisfied orders as well as the level of overall inventory sustainability as impacted by disruptions.
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spelling doaj.art-3a09ce15d9214aad90165c7da85a962b2022-12-22T03:54:44ZengUniversity of Novi Sad, Faculty of Technical SciencesInternational Journal of Industrial Engineering and Management2217-26612683-345X2022-12-01134265282http://doi.org/10.24867/IJIEM-2022-3-318318Complex Production-Inventory Replenishment Problem With Uncertainty in Customer BehaviourTunde Adediran0Ammar Al-BaziAston University, Birmingham B4 7ET, United KingdomA flow-shop production-inventory system can become very complex in terms of production planning and scheduling. One of the causes of complexity in such a system is the uncertainty of customer demand behaviour which disrupts production lines and inventory control. The uncertainty in customer demand behaviour that causes production disruptions can be in the form of order cancellation, change in order delivery sequence and due time. In general, such disruptions cause order shortages, late order delivery, and the underperformance of resources, amongst others. This paper considers the random combination of occurrences of these disruptions under different production scenario problems. An innovative framework that embeds agent-based simulation, heuristic algorithm, and inventory replenishment strategy is proposed to tackle these disruption problems. The integration of these methods formed a robust platform for adapting and accommodating disruptions with minimum impact on production operations. An experimental study is performed, and the results determine the impact of disruptions under different demand and inventory statuses. An inventory replenishment method is compared with sequential and instantaneous replenishment methods to establish the significance of the proposed method. The proposed method outperformed the sequential and instantaneous methods in terms of the total number of late or unsatisfied orders as well as the level of overall inventory sustainability as impacted by disruptions.http://www.ijiemjournal.uns.ac.rs/images/journal/volume13/IJIEM_318.pdfproduction schedulinguncertainty in customer behaviourproduction disruptionoem manufacturergradual inventory replenishment policyheuristics optimisationagent-based modelling
spellingShingle Tunde Adediran
Ammar Al-Bazi
Complex Production-Inventory Replenishment Problem With Uncertainty in Customer Behaviour
International Journal of Industrial Engineering and Management
production scheduling
uncertainty in customer behaviour
production disruption
oem manufacturer
gradual inventory replenishment policy
heuristics optimisation
agent-based modelling
title Complex Production-Inventory Replenishment Problem With Uncertainty in Customer Behaviour
title_full Complex Production-Inventory Replenishment Problem With Uncertainty in Customer Behaviour
title_fullStr Complex Production-Inventory Replenishment Problem With Uncertainty in Customer Behaviour
title_full_unstemmed Complex Production-Inventory Replenishment Problem With Uncertainty in Customer Behaviour
title_short Complex Production-Inventory Replenishment Problem With Uncertainty in Customer Behaviour
title_sort complex production inventory replenishment problem with uncertainty in customer behaviour
topic production scheduling
uncertainty in customer behaviour
production disruption
oem manufacturer
gradual inventory replenishment policy
heuristics optimisation
agent-based modelling
url http://www.ijiemjournal.uns.ac.rs/images/journal/volume13/IJIEM_318.pdf
work_keys_str_mv AT tundeadediran complexproductioninventoryreplenishmentproblemwithuncertaintyincustomerbehaviour
AT ammaralbazi complexproductioninventoryreplenishmentproblemwithuncertaintyincustomerbehaviour