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Louly Dolgui 2002 Igls
Louly Dolgui 2002 Igls
p
r u
i
1
p, be the lead
times of the orders made at the beginning of the periods
kp+1, (k-1)p+1,, (k-
(
(
(
p
r u
i
1
)p+1. The order made in
the period m+1-j is delivered after the end of the period
m when j L
j m
i
>
+1
, i.e. if
j L
j m
i
>
+1
1 is equal to 1. Then,
the random variables
=
(
(
(
=
+ >
+
+
p
r
i
u
p ) j k (
i j
r jp L
r kp , p
i
N
1
1
0
1 , n i , , 1 = , (1)
give the global state of the previous orders. In fact,
m p
i
N
,
is the number of the component i orders that are
3
not arrived yet (at the end of the period m, they are
already waited).
Proposition 1. The cost of the period m=kp+r can be
expressed as follows:
) , , , , (
, ,
1
m p
n
m p
k
N N p X C =
1
1
=
r
c
+
+
=
+
n
i
r kp p
i i i i
pN r p x a h D
1
,
) (
+
+ +
=
+ ) ( max
,
, , 1
i
r kp p
i
n i
x p r pN DH
(2)
where ) , , (
1 n
x x X = and + =
=
n
i
i i
a h b H
1
. The value
(Z)
+
is equal to max{Z, 0}.
Proof. The cost is equal to the sum of the holding cost of
components, the backlogging cost of the finished
product, and the setup cost.
There is a shortage at the end of the period m when the
amount of components, arrived in the inventory since the
first period, are not sufficient to satisfy the cumulative
demand D(kp+r) of the finished product.
The amount of components i needed by this cumulative
demand is equal to a
i
D(kp+r). The number of orders
made since the beginning until the end of the period
(kp+r) is equal to k+1, and the number of the delivered
orders is equal to (k+1-
r kp , p
i
N
+
). There is a shortage if
there is a component i for which the initial inventory
i i
Dx a plus the delivered amount Q
i
(k+1-
r kp p
i
N
+ ,
) is
smaller than the cumulative needed amount a
i
D(kp+r).
So, there is a shortage at the end of the period m, if there
is a component i satisfying ) (
,
i
r kp p
i
x p r pN +
+
>0.
The number of backlogged demand is given by the
component i that has the maximal value
) x p r pN (
i
r kp , p
i
+
+
. Then, the backlogging cost of
the period m is ) x p r pN ( max bD
i
r kp , p
i
n ,..., i
+
+
=1
, and
only [kp+r- ) x p r pN ( max
i
r kp , p
i
n ,..., i
+
+
=1
] demands are
satisfied.
The inventory
m
i
S of the component i at the end of the
period m is equal to the initial inventory
i i
Dx a plus the
delivered amount Q
i
(k+1-
r kp p
i
N
+ ,
) without the quantity
used for the satisfied demand:
+ + ) pN r p x ( D a = S
m , p
i i i
m
i
+
=
+ ) x p r pN ( max D a
j
m , p
j
n , , j
i
1
. (3)
Given that there is a setup cost c if r=1, the sum of the
holding cost of the components, the backlogging cost of
the finished product, and the setup cost at the end of the
period m is equal to:
) N , , N , p , X ( C
m , p
n
m , p
m
1
=
1
1
=
r
c
+
+
=
+
n
i
r kp p
i i i i
pN r p x a h D
1
,
) (
+
+ +
=
+ ) ( max
,
, , 1
i
r kp p
i
n i
x p r pN DH
.
This cost is a random variable. To express the holding
cost on an infinite horizon, a Markov chain is proposed
for which a state Z { }
1
1 , 0
i
u
is a binary vector that
describes the orders made in the previous u
i
-1 periods.
The average cost on the infinite horizon is:
) , ( p X C =
=
p
r
r
p
p X C E
1
1
)] , ( [ , (4)
where E(Z) is the expected value of Z, and
) , ( p X C
r
=
1
1
= r
c
+ +
=
+
n
i
r p n p
i i i i
i
pN r p x a h D
1
,
) (
+
+ +
=
+ ) ( max
,
, , 1
i
r p n p
i
n i
x p r pN DH
i
, (5)
p
p r u
i
i
n
+
=
1
. (6)
To simplify the equations, let h
i
be the holding cost of
the amount a
i
D, instead of the unit holding cost. The
problem is the same with this new notation.
3. PERFORMANCE MEASURE
The problem is to minimize the objective function given
by the equation (4). This minimization is rather difficult
because the function is not linear and, in our case, the
decision variables, x
i
, i=1,2,,n, are integer. The
minimization of an objective function with the same
structure was the aim of Chu et al. (1993), but in their
case the lead times of components were continuous
random variables, p equal to 1, and the decision variables
were real, so they didn't have discrete optimization
problem.
Theorem 1. An explicit form for average cost, given by
equation (4), is the following:
) , ( p X C =
p
c
+ ) (
2
1
b H
p
+
=
n
i
p
i i i
N E x h
1
)] ( [
+
= =
+ +
0 1 1
,
1
] ) ( 1 [
k
p
r
n
i
p
p r k x r p
i
p
F H , (7)
4
where ) Pr( ) (
, ,
x N x F
r p
i
r p
i
= and =
=
p
r
r p
i
p
i
N N
1
,
.
Proof. In fact,
)] , ( [ p X C E
r
=
1
1
=
r
c + ) )( ( r p b H
+
=
+
n
i
r p n p
i i i
i
N pE x h
1
,
)] ( [ + ) (Z HE (8)
where
i
n i
Z Z
, , 1
max
=
= , (9)
and
+ +
+ = ) (
,
i
r p n p
i i
x p r pN Z
i
. (10)
Z is a positive discrete random variable with a finite
number of possible values, its expected value is:
) (Z E =
=
0
, , 1
)] max Pr( 1 [
k
i
n i
k Z
. (11)
But the random variables Z
i
are independent, hence:
) (Z E =
= 0 1
] ) ( Pr 1 [
k
n
i
i
k Z
=
=
+ +
0 1
,
] ) ( 1 [
k
n
i
p
p r k x r p
i
F . (12)
Using the equation (12), the equation (8) becomes:
)] , ( [ p X C E
r
=
1
1
=
r
c + ) )( ( r p b H
+
=
+
n
i
r p n p
i i i
i
N pE x h
1
,
)] ( [
+
=
+ +
0 1
,
] ) ( 1 [
k
n
i
p
p r k x r p
i
F . (13)
The proof is obtained by using (13) in (4).
In addition, it is easy to see that the components
i
x of
the optimum X must satisfy 1 0
i i
u x .
4. OPTIMIZATION
The general optimization problem is difficult due to the
no linearity of the cost. In this section, the problem is
solved under the assumption that holding costs of the
quantities Q
i
=a
i
D per period are the same, and the lead
time L
i
of the different components have the same
distribution probability. Then, the costs h
i
, i=1n, can
be noted by h, and the distributions
r p
i
F
,
, i=1n, can
be noted by
r p
F
,
. The obtained problem will be noted
by and an exact method which solves this problem in
polynomial time will be given. The following notations
are used.
E
k
is the set of vectors X, each vector's component is an
integer variable satisfying:
j i
x x = , for k i and k j .
1
k
P and
2
k
P are applications from E
k
to E
k+1
which are
defined as follows:
=
+ =
=
, otherwise , x y
1, k i if , x y
Y ) X ( P
i i
i
k
1
1
=
+ =
=
+
. otherwise , x y
1, k i if , x y
Y ) X ( P
i i
k i
k
1
2
Then two vectors, ) (
1
X P
k
and ) (
2
X P
k
, of the set E
k+1
are associated to every element X of E
k
.
Theorem 2. The following equation is true under the
assumption of the problem : { } 1 , , 2 , 1 n k ,
) p , X ( C Min
k
E X
= ) p , X ( C Min
k
E X
1 +
. (14)
Proof. Note that
k k
E E
+1
. Then it is sufficient to
show that: { } 1 , , 2 , 1 n k ,
) p , X ( C Min
k
E X
1
) p , X ( C Min
k
E X
. (15)
For each vector X
of E
k
, there is a vector of E
k+1
which
gives a smaller cost. Precisely, at least one of the two
vectors, ) (
1
X P
k
and ) (
2
X P
k
, gives a cost less than the
cost C(X,p):
k
E X , { } ] p ), X ( P [ C ], p ), X ( P [ C Min
k k
2 1
) ( p , X C . (16)
In order to proof the theorem, it is sufficient to show the
inequality (16). Let's suppose that (16) is false, then the
two following equations are obtained:
] p ), X ( P [ C ) p , X ( C
k
1
< , (17)
] p ), X ( P [ C ) p , X ( C
k
2
< . (18)
The equation (17) can easily be rewritten as:
) (
k
x x h
1 1 +
>
=
+ + + +
+
0 1
, ,
)] ( ) ( [(
1 1
j
p
r
p
p r j x
r p
p
p r j x
r p
p
H k
F F
+ =
+ + + +
n
k i
p
p r j x
k
r p
p
p r j x
k
r p i
F F
2
, ,
) ( ) (
1
. (19)
In the same time, (18) gives:
<
+
) (
1 1 k
x x h k
5
=
+ + + +
+
0 1
, ,
)] ( ) ( [
1 1
j
p
r
p
p r j x
r p
p
p r j x
r p
p
H k
k k
F F
+ +
+ =
n
k i
i r p
p
p r j x
F
1
,
) ( . (20)
Using that
k k
= ) (
l k
k
l
l
=
1
1
0
for
) (
1 ,
p
p r j x
r p
k
F
+ +
= and ) (
1 ,
p
p r j x
r p k
k
F
+ +
+
= , the
equation (20) becomes:
<
+
+
nh b
x x h k
k
) (
1 1
+ +
+
0
1 1
)] ( ) ( [
j
k
j x F j x F
+ +
=
+
1
0
1
1
1
) ( ) (
k
l
k
l k l
j x F j x F +
+ =
n
k i
i
j x F
1
) ( ,
that can be rewritten as follows :
<
+
+
nh b
x x h k
k
) (
1 1
+ +
=
+
1
0 0
1 1
)] ( ) ( [
k
l j
k
j x F j x F
+ + +
+ =
+
n
k i
i k
l k l
j x F j x F j x F
2
1 1
) ( ) ( ) ( . (21)
Using the fact that
k l k l
) ( ) (
for
) (
1 ,
p
p r j x r p
F
+ +
= and ) (
1 ,
p
p r j x r p k
F
+ +
+
= ,
equation (21) becomes:
) (
1 1 +
k
x x h <
=
+ + + +
+
0 1
, ,
)] ( ) ( [(
1 1
j
p
r
p
p r j x
r p
p
p r j x
r p
p
H k
F F
+ =
+ + + +
n
k i
p
p r j x
r p
p
p r j x
k
r p i
F F
2
, ,
) ( ) (
1
. (22)
The equation (19) and the equation (22) are in
contradiction. Then, the equation (16) is true.
Corollary 1. The problem has an optimal solution in
which the initial inventories have the same value for
every type of components.
Proof. The prove is immediate by transitivity from the
equation (14): ) p , X ( C Min
E X
1
= ) p , X ( C Min
n
E X
.
Then, there is an optimal solution X =
) ..., , ..., , ( x x x E
n
. This optimal solution can be
calculated using the following theorem.
Theorem 3. The optimum X= ) ..., , ..., , ( x x x which
minimizes the problem is such that the integer x
satisfies:
) ( F
H
bp
) ( F
p
r p x
p
r
r , p
p
r p x
p
r
r , p
n n
+
=
+
=
1
1
1
. (23)
Proof. According to corollary1, the cost C(X,p) can be
reduced to a two-variable function ) , ( p x C
e
:
) p , x ..., , x ..., , x ( C = ) p , x ( C
e
=
2
1
+
p
p
c
) b H ( +
)] ( [
p
N E x nh +
=
+ +
0 1
1
1
k
p
r
p
r p k x r , p
p
)] ( F [ H
n
,
where ) ( ) ( ) ( ) (
2 1
p p
n
p p
N E N E N E N E = = = = .
Let G(x,p) be the following function:
) , ( p x G = ) , 1 ( p x C
e
+ - ) , ( p x C
e
= b F
p
r
p
r p x r p
p
H
n
=
+
1
,
) ( . (24)
G(x,p) is an increasing function, because ) (
,
x F
r p
is a
positive increasing function. Then, the inequalities,
) , 1 ( ) , ( p x C p x C
e e
and ) , 1 ( ) , ( p x C p x C
e e
+ ,
give the value of x which minimizes the cost C
e
. These
inequalities can be rewritten as:
) ( ) (
1
, 1
1
,
p
r p x
p
r
r p
p
r p x
p
r
r p
n n
F
H
bp
F
+
=
+
=
.
Note that for n=1, i.e. for one type of components, and
for p=1, i.e. periodicity equal to 1, the obtained model is
the well known newsboy model.
5. CONCLUSIONS
The aim of this paper is the study of a supply problem for
assembly systems, when several types of components are
needed to assemble a finished product. The lead times of
the components are independent random variables, and
the demand of the finished product is constant. The
studied criteria are the sum of the holding cost of
components, the finished product backlogging cost, and
the setup cost.
An explicit form of the average cost as a function of the
MRP parameters is given. A generalized newsboy model
that allows the problem resolution under an assumption
is given. This assumption is that the lead times of the
different types of components follow the same
distribution probability, and that the holding costs per
period of the ordered quantities are the same.
Compared to the classical newsboy model, the proposed
model is not limited to one type of raw materials, and can
be used for assembly systems with several types of
components. This model takes into account the
dependence between inventory levels at different
periods, and also the dependence between the inventories
of the different types of components.
6
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