Abstracts Category : Other

Developing Customer Order Penetration Point withinProduction Lines, Newsvendor Supply Chains, and Supply Chains withDemand Uncertainties in Two Consecutive Echelons

by Iman Ghalehkhondabi

Demand uncertainty has been an important obstacle inproduction systems and supply chains in recent decades. Thisuncertainty in demand has stimulated many researchers andpractitioners to find new ways such as combining Make to Stock(MTS) and Make to Order (MTO) manufacturing systems to handle theuncertainty problem. In this research, applying the hybrid MTS/MTOsystem is developed in three different manufacturing frameworks.Thefirst framework considers a production line, which producessemi-finished products based on a Make To Stock (MTS) strategyuntil a specific process is finished, and operates based on a MakeTo Order (MTO) strategy after this process. Two scenarios arestudied in the first model: 1- In the first Scenario, theproduction line applies the MTO strategy after the OPP, which leadsto an idleness cost when there is no order in the system. 2- In thesecond Scenario, the production line either applies the MTOstrategy or the MTS strategy after the OPP, based on the presenceof an order for semi-finished products in the line. This secondscenario comprises the holding cost of completed products on MTSstrategy, but does not have an idle cost.The second frameworkconsiders the demand uncertainties in two consecutive echelons of asupply chain unlike most of the field research which has onlyfocused on the final customers demand uncertainty. In order todecrease the operating costs of a manufacturer, a model is proposedto use hybrid manufacturing in two different levels of a supplychain with two echelons of manufacturers. The output of thepresented model is the quantity of semi-finished products orderedby the decoupling point upstream manufacturer.The third problemstudies a multi-product, two-echelon supply chain within anewsvendor framework, in which semi-finished products are producedby a supplier and customized according to specific customer orders.The focus of this paper is to investigate a situation where themanufacturer wishes to determine the fraction of productionperformed by the supplier, its optimal semi-finished product ordersize, and the price for each product type. In order to make theproblem more practical, capacity and budget constraints areconsidered.Advisors/Committee Members: Weckman, Gary (Advisor).