Skip to main content

Lund University Publications

LUND UNIVERSITY LIBRARIES

Optimal Expediting Decisions in a Continuous-Stage Serial Supply Chain.

Berling, Peter LU and Martinez-de-Albeniz, V (2011) Working Paper WP-906. p.1-30
Abstract
In this paper, we analyze expediting decisions in a continuous-time, continuous-stage serial supply chain facing a Poisson demand process. For each unit in the chain, one must decide at which speed it should be moved downstream, given the state of the system, so as to minimize total supply chain costs. We decompose the problem into a set of one-dimensional subproblems that can be easily solved and characterize the optimal expediting policy: under quite general assumptions, the optimal speed of a given unit accelerates upstream, and then slows down downstream. We finally provide a case study where we estimate the benefits of expediting compared to a fixed transportation speed and show them to be significant.
Please use this url to cite or link to this publication:
author
and
organization
publishing date
type
Working paper
publication status
published
subject
volume
Working Paper WP-906
pages
30 pages
publisher
IESE BusinessSchool
language
English
LU publication?
yes
id
2502d072-c0db-44f5-9bbd-93b0a8bc303a (old id 2005547)
alternative location
https://media.iese.edu/research/pdfs/DI-0906-E.pdf
date added to LUP
2016-04-04 10:48:54
date last changed
2019-01-18 11:50:17
@misc{2502d072-c0db-44f5-9bbd-93b0a8bc303a,
  abstract     = {In this paper, we analyze expediting decisions in a continuous-time, continuous-stage serial supply chain facing a Poisson demand process. For each unit in the chain, one must decide at which speed it should be moved downstream, given the state of the system, so as to minimize total supply chain costs. We decompose the problem into a set of one-dimensional subproblems that can be easily solved and characterize the optimal expediting policy: under quite general assumptions, the optimal speed of a given unit accelerates upstream, and then slows down downstream. We finally provide a case study where we estimate the benefits of expediting compared to a fixed transportation speed and show them to be significant.},
  author       = {Berling, Peter and Martinez-de-Albeniz, V},
  language     = {eng},
  note         = {Working Paper},
  pages        = {1--30},
  publisher    = {IESE BusinessSchool},
  title        = {Optimal Expediting Decisions in a Continuous-Stage Serial Supply Chain.},
  url          = {https://media.iese.edu/research/pdfs/DI-0906-E.pdf},
  volume       = {Working Paper WP-906},
  year         = {2011},
}