Dynamic Lot Optimization of Assembly Supply Chain with Delivery Time Constraint

Shuang-yan Li, De-zhi Zhang, Fang-ping Jin


In this paper, we investigate operational decision optimization problem of assembly manufacturing capacitated supply chain. Open equations of this system in all planning periods are set up. Delivery time to clients form a time window that limits point to assembly manufacturer delivery start and end time. The system model divide planning time into many equally periods, and decisions can vary with time. Ability constraint in the process of supply chain operation, time constraints and assembly production constrain are all considered in the inventory control dynamic batch optimization model. We solve the optimization problem by hybrid mixed integral optimization and SQP algorithm. At last, we examine a set of numerical examples that reveal the insights into the dynamic inventory control policy and the performance of such an assembly type inventory mode.

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DOI: http://dx.doi.org/10.5539/ibr.v6n11p73

International Business Research  ISSN 1913-9004 (Print), ISSN 1913-9012 (Online)

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