Co-Production of Substitutable Products
Co-production occurs when a production run produces, simultaneously, more than one type of product. In this paper, we consider co-production planning problems with stochastic yields, multiple processes, limited capacity and nontransitive product demand substitution. We show that these problems can be transformed to a structure where the demand substitutions are transitive. We address the decisions of how to select processes, to determine production quantities for each process and to allocate inventory to product demands. Finally, we provide simple heuristics and report on computational experiments done on randomly generated test cases.
Computer Sciences | Operations and Supply Chain Management
Information Systems and Management
Production Planning and Control
Taylor and Francis
BITRAN, G. and LEONG, Thin Yin.
Co-Production of Substitutable Products. (1995). Production Planning and Control. 6, (1), 13-13. Research Collection School Of Information Systems.
Available at: http://ink.library.smu.edu.sg/sis_research/164