Tuesday , December 18 2018

A State of the Art on Supply Planning and Inventory Control under Lead Time Uncertainty

Alexandre DOLGUI, Oussama BEN AMMAR, Faicel HNAIEN, Mohamed Aly O. LOULY
1 École Nationale Supérieure des Mines, LIMOS, UMR 6158 CNRS
158 cours Fauriel, 42023 Saint Etienne Cedex 2, France
2 École Nationale Supérieure des Mines, LIMOS, UMR 6158 CNRS
158 cours Fauriel, 42023 Saint Etienne Cedex 2, France
3 FARCAM, Industrial Engineering Department, College of Engineering, King Saud University
P.O. Box 800, Riyadh 11421, Kingdom of Saudi Arabia

Abstract: In literature, most papers examine several stochastic demand processes where order lead times are constant. In reality, manufacturing firms use inventory management software, especially MRP, which ignored lead time uncertainty. It is true that in certain special cases, lead time uncertainty has essentially no effect and can be ignored. Nevertheless more often, lead time fluctuations strongly degrade tools performance and cause high production costs, just as demand uncertainty does. Seemingly, uncertainty has been neglected for a long time in favour of studying demand uncertainties. Industry agrees that it is overdue and there is a need to rectify this oversight. Nowadays, this gap in research activity begins to be filled in order to respond to companies having non-deterministic lead-times constraints. This paper reviews some of existing literature of supply planning tools under uncertainty of lead times. The extensive literature review that we compiled consists of citations from 1970 to 2012. A classification scheme for supply planning under uncertainty is defined.

Keywords: Production planning, Inventory control, MRP software, Parameterization, Random lead times

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CITE THIS PAPER AS:
Alexandre DOLGUI, Oussama BEN AMMAR, Faicel HNAIEN, Mohamed Aly O. LOULY, A State of the Art on Supply Planning and Inventory Control under Lead Time Uncertainty, Studies in Informatics and Control, ISSN 1220-1766, vol. 22 (3), pp. 255-268, 2013.

https://doi.org/10.24846/v22i3y201302