Dynamic order allocation for make-to-order manufacturing networks : an industrial case study of optimization under uncertainty/

Thesis (Ph. D.)--Massachusetts Institute of Technology, Sloan School of Management, Operations Research Center, 2011.

Bibliographic Details
Main Author: Williams, Gareth Pierce
Other Authors: Jérémie Gallien.
Format: Thesis
Language:eng
Published: Massachusetts Institute of Technology 2011
Subjects:
Online Access:http://hdl.handle.net/1721.1/67770
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author Williams, Gareth Pierce
author2 Jérémie Gallien.
author_facet Jérémie Gallien.
Williams, Gareth Pierce
author_sort Williams, Gareth Pierce
collection MIT
description Thesis (Ph. D.)--Massachusetts Institute of Technology, Sloan School of Management, Operations Research Center, 2011.
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spelling mit-1721.1/677702019-04-11T04:03:12Z Dynamic order allocation for make-to-order manufacturing networks : an industrial case study of optimization under uncertainty/ Williams, Gareth Pierce Jérémie Gallien. Massachusetts Institute of Technology. Operations Research Center. Massachusetts Institute of Technology. Operations Research Center. Operations Research Center. Thesis (Ph. D.)--Massachusetts Institute of Technology, Sloan School of Management, Operations Research Center, 2011. Cataloged from PDF version of thesis. Includes bibliographical references (p. 203-208). Planning and controlling production in a large make-to-order manufacturing network poses complex and costly operational problems. As customers continually submit customized orders, a centralized decision-maker must quickly allocate each order to production facilities with limited but flexible labor, production capacity, and parts availability. In collaboration with a major desktop manufacturing firm, we study these relatively unexplored problems, the firm's solutions to it, and alternate approaches based on mathematical optimization. We develop and analyze three distinct models for these problems which incorporate the firm's data, testing, and feedback, emphasizing realism and usability. The problem is cast as a Dynamic Program with a detailed model of demand uncertainty. Decisions include planning production over time, from a few hours to a quarter year, and determining the appropriate amount of labor at each factory. The objective is to minimize shipping and labor costs while providing superb customer service by producing orders on-time. Because the stochastic Dynamic Program is too difficult to solve directly, we propose deterministic, rolling-horizon, Mixed Integer Linear Programs, including one that uses recently developed affinely-adjustable Robust Optimization techniques, that can be solved in a few minutes. Simulations and a perfect hindsight upper bound show that they can be near-optimal. Consistent results indicate that these solutions offer several hundred thousand dollars in daily cost saving opportunities by accounting for future demand and repeatedly re-balancing factory loads via re-allocating orders, improving capacity utilization, and improving on-time delivery. by Gareth Pierce Williams. Ph.D. 2011-12-19T18:49:16Z 2011-12-19T18:49:16Z 2011 2011 Thesis http://hdl.handle.net/1721.1/67770 767527864 eng M.I.T. theses are protected by copyright. They may be viewed from this source for any purpose, but reproduction or distribution in any format is prohibited without written permission. See provided URL for inquiries about permission. http://dspace.mit.edu/handle/1721.1/7582 208 p. application/pdf Massachusetts Institute of Technology
spellingShingle Operations Research Center.
Williams, Gareth Pierce
Dynamic order allocation for make-to-order manufacturing networks : an industrial case study of optimization under uncertainty/
title Dynamic order allocation for make-to-order manufacturing networks : an industrial case study of optimization under uncertainty/
title_full Dynamic order allocation for make-to-order manufacturing networks : an industrial case study of optimization under uncertainty/
title_fullStr Dynamic order allocation for make-to-order manufacturing networks : an industrial case study of optimization under uncertainty/
title_full_unstemmed Dynamic order allocation for make-to-order manufacturing networks : an industrial case study of optimization under uncertainty/
title_short Dynamic order allocation for make-to-order manufacturing networks : an industrial case study of optimization under uncertainty/
title_sort dynamic order allocation for make to order manufacturing networks an industrial case study of optimization under uncertainty
topic Operations Research Center.
url http://hdl.handle.net/1721.1/67770
work_keys_str_mv AT williamsgarethpierce dynamicorderallocationformaketoordermanufacturingnetworksanindustrialcasestudyofoptimizationunderuncertainty