Improving the design of stochastic production lines: An approach using perturbation analysis

K. L. Donohue, M. L. Spearman

Research output: Contribution to journalArticlepeer-review

12 Scopus citations

Abstract

With the recent increase in expense and specialization of equipment, capacity decisions have taken on greater significance. As a result, companies are in need of a better understanding of the investment tradeoffs. In this paper, we examine the problem of determining the most profitable capacity configuration for a production line modelled as a series of single-server stations. In the context of a constant work-in-process (CONWIP) control system, an algorithm is developed for solving the general problem using a single-run simulation procedure. Various market structures are examined and sensitivity analysis is performed on the cost of capacity, quality and the amount of work-in-process allowed in the system.

Original languageEnglish (US)
Pages (from-to)2789-2806
Number of pages18
JournalInternational Journal of Production Research
Volume31
Issue number12
DOIs
StatePublished - Dec 1993

Bibliographical note

Funding Information:
Acknowledgment This research has been supported in part by Grant No. DDM-8905638 from the National Science Foundation.

Copyright:
Copyright 2016 Elsevier B.V., All rights reserved.

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