Value of Stock Level Information and Impact on Manufacturers' Substitution Decisions
In this work, we study the product substitution decisions of amanufacturer that produces multiple items. We first quantify the cost savings due to flexibility attained through substitution. Ideally, the manufacturer must use the stock level information when giving production, scheduling and substitu...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
University of Žilina
2013-03-01
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| Series: | Communications |
| Subjects: | |
| Online Access: | https://komunikacie.uniza.sk/artkey/csl-201301-0010_value-of-stock-level-information-and-impact-on-manufacturers-substitution-decisions.php |
| Summary: | In this work, we study the product substitution decisions of amanufacturer that produces multiple items. We first quantify the cost savings due to flexibility attained through substitution. Ideally, the manufacturer must use the stock level information when giving production, scheduling and substitution decisions. In practice however, such decisions are often given ignoring the available information. In this work, we also address the importance of using stock level information by quantifying its value. Results show that using stock level information is critical especially when taking production scheduling decisions. |
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| ISSN: | 1335-4205 2585-7878 |