Chance-Constraint-Based Heuristics for Production Planning in the Face of Stochastic Demand and Workload-Dependent Lead Times



While the problem of planning production in the face of uncertain demand has been studied in various forms for decades, there is still no completely satisfactory solution approach. In this chapter we propose several heuristics based on chance-constrained models for a simple single stage single product system with workload-dependent lead times, which we compare to two-stage and multi-stage stochastic programing formulations. Exploratory computational experiments show promising performance for the heuristics, and raise a number of interesting issues that arise in comparing solutions obtained by the different approaches.


Lead Time Planning Horizon Fill Rate Scenario Tree Safety Stock 



The research of Reha Uzsoy was partially supported by the National Science Foundation under Grant No. CCM-1029706. The opinions in this paper are those of the authors, and do not necessarily reflect the position of NSF.


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© Springer-Verlag London 2012

Authors and Affiliations

  1. 1.School of Business AdministrationAl Akhawayn UniversityIfraneMorocco
  2. 2.Edward P. Fitts Department of Industrial and Systems EngineeringNorth Carolina State UniversityRaleighUSA

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