Integrated flexible capacity and inventory management under flexible capacity uncertainty

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buir.advisorAlp, Osman
dc.contributor.authorPaç, Mehmet Fazıl
dc.date.accessioned2016-07-01T11:06:15Z
dc.date.available2016-07-01T11:06:15Z
dc.date.issued2006
dc.descriptionCataloged from PDF version of article.en_US
dc.description.abstractIn a manufacturing environment with volatile demand, inventory management can be coupled with dynamic capacity adjustments for handling the fluctuations more effectively. In this study we consider the integrated management of inventory and flexible capacity management under seasonal stochastic demand and uncertain labor supply. The capacity planning problem is investigated from the workforce planning perspective. We consider a manufacturing firm that can temporarily increase its production capacity by utilizing contingent workers from an external labor supply agency. The uncertainty of contingent capacity arises from the (un)availability of contingent workers, the pool size and the behavior of the labor supply agency. Using a dynamic programming approach, we formulate an infinite horizon model determining the optimal levels of permanent and contracted capacity, in order to minimize the total cost of operations. Within the dynamic program, we determine the optimal operational capacity decisions, namely the size of contracted and contingent capacity to be utilized in each period. The characteristics of the optimal policies are analyzed under an infinite horizon setting. In addition we consider temporary labor contracts, that diminish the effects of supply uncertainty on the manufacturer, at a specific contracting cost. Our analysis shows that as the supply uncertainty and/or the expected cost of utilizing contingent workers increase, the value of temporary labor contracts also increase. In contrast increasing demand variability reduces the incentive of the manufacturer to own capacity and increases the utilization of contingent resources.en_US
dc.description.provenanceMade available in DSpace on 2016-07-01T11:06:15Z (GMT). No. of bitstreams: 1 0003118.pdf: 573957 bytes, checksum: ccf99f1351b44a7e70c8274076710b27 (MD5) Previous issue date: 2006en
dc.description.statementofresponsibilityPaç, Mehmet Fazılen_US
dc.format.extentxiii, 110 leaves, tables, graphsen_US
dc.identifier.itemidBILKUTUPB099926
dc.identifier.urihttp://hdl.handle.net/11693/29831
dc.language.isoEnglishen_US
dc.rightsinfo:eu-repo/semantics/openAccessen_US
dc.subjectFlexible Capacityen_US
dc.subjectCapacity Managementen_US
dc.subjectInventoryen_US
dc.subjectProduction Planningen_US
dc.subjectStochastic Dynamic Programmingen_US
dc.subject.lccHD40 .P33 2006en_US
dc.subject.lcshInventories Management.en_US
dc.titleIntegrated flexible capacity and inventory management under flexible capacity uncertaintyen_US
dc.typeThesisen_US
thesis.degree.disciplineIndustrial Engineering
thesis.degree.grantorBilkent University
thesis.degree.levelMaster's
thesis.degree.nameMS (Master of Science)

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