James R. Bradley - Publications
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| The Simultaneous Planning of Production, Capacity and Inventory in Seasonal Demand Environments | |
| James R. Bradley, The Johnson School,
Cornell University Bruce C. Arntzen, Global Supply Chain Associates |
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| Operations Research,
Vol. 47, No. 6, Nov.-Dec. 1999, pp. 795-806. |
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| Manufacturing managers often address capacity and inventory decisions separately, thus ignoring the interaction between capacity and inventory within a manufacturing system. The separation of these two decisions can lead to an imbalance of capacity and inventory investment. We develop a model that simultaneously plans capacity investment, inventory investment, and the production schedule using return on assets as the objective to maximize. An algorithm is developed that optimizes a fractional objective function for a mixed-integer program. The model was applied at an electronics manufacturer and at a manufacturer of office supplies. |