O.Kaya; "Coordinate Production and Dispatching...",
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 Faculty of Engineering and Natural Sciences







Coordinated Production and Dispatching Decisions in VMI Systems



Onur Kaya


Koç University





In this study, we focus on the coordination of production and logistics decisions between a supplier and a retailer in a vendor-managed inventory system. We consider deterministic and stochastic models in this study. In our deterministic model, the production and the demand rates of a specific product are known and constant. The supplier determines the length of the inventory replenishment cycle and the order quantity of the retailer. We determine the characteristics of the optimal policy and determine the optimal solution for the deterministic model. In the stochastic model, we assume that the demand and production rates are random and we develop a stochastic dynamic programming model for this case. We analyze the optimal solution and also consider different types of dispatch policies and compare their efficiencies with the optimal solution through a numerical study.





Onur Kaya is an assistant professor in the Department of Industrial Engineering at Koc University. After graduating from the Industrial Engineering Department of METU in 2002, he received his M.S in 2003 and Ph.D. in 2006 from University of California, Berkeley, Department of Industrial Engineering and Operations Research. He also has an M.A. degree in Statistics from the same university. Onur Kaya's research interests include stochastic models of production and inventory systems, scheduling, management of supply chain systems and gaming and contracts in supply chains.



IE-OPIM Joint Research Seminar Series 2009-20101



1 Co-organizers: Murat Kaya (IE) mkaya@sabanciuniv.edu, Çağrı Haksöz (OPIM) cagrihaksoz@sabanciuniv.edu


December 16th Wednesday, 13:40-14:40, MDBF G032