Value of stock level information and impact on manufacturers' substitution decisions

Date

2013-01-01

Author

Tore, Nursen
Savaşaneril Tüfekci, Seçil
Serin, Yaşar Yasemin

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This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

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In this work, we study the product substitution decisions of a manufacturer that produces multiple items. We first quantify the cost savings due to flexibility attained through substitution. Ideally, the manufacturer must use the stock level information when giving production, scheduling and substitution decisions. In practice however, such decisions are often given ignoring the available information. In this work, we also address the importance of using stock level information by quantifying its value. Results show that using stock level information is critical especially when taking production scheduling decisions.

Subject Keywords

Product substitution, Production scheduling, Stochastic control of queues, Value of information

URI

https://www.scopus.com/inward/record.uri?partnerID=HzOxMe3b&scp=84875489847&origin=inward
https://hdl.handle.net/11511/118541

Journal

Communications - Scientific Letters of the University of Žilina

Collections

Department of Industrial Engineering, Article

Citation Formats

N. Tore, S. Savaşaneril Tüfekci, and Y. Y. Serin, “Value of stock level information and impact on manufacturers’ substitution decisions,” Communications - Scientific Letters of the University of Žilina, vol. 15, no. 1, pp. 54–61, 2013, Accessed: 00, 2026. [Online]. Available: https://www.scopus.com/inward/record.uri?partnerID=HzOxMe3b&scp=84875489847&origin=inward.