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Designing a layout consists in optimally locating manufacturing facilities in order to reduce the required material handling resources and movement of material. Evidently, this leads to cost reduction. Static layout models are presented in the first part of the chapter. They are used when the environment can be considered as steady. The basic static models and their characteristics are provided. K-mean analysis, often required for designing functional departments, as well as cross-decomposition, used to design cells, are both explained and carefully illustrated. Note that these two approaches are commonly used beyond layout design. The standard approaches (CORELAP, INRIA-SAGEP, CRAFT) to locate manufacturing entities on the space available are reviewed and spotlighted. They close the first part of the chapter. Dynamic layout models make up the second part. These models are studied because they cope well with an ever-changing market environment. Dynamic facility layouts approaches, which are flexible and easy to reconfigure, and robust layout techniques, which can be used efficiently over many product mixes and volumes, complete the chapter. [ABSTRACT FROM AUTHOR]

The beginning of this chapter analyzes the progress of scheduling methods over time and explains why dynamic scheduling is superior to static scheduling in modern production systems. This is why the rest of the text is exclusively devoted to dynamic scheduling. First, the well-known priority rules are presented and analyzed. Then, repair-based approaches are introduced. They are used to adjust a given schedule when an unexpected event arises. The remainder of the chapter concerns some novel approaches developed by the authors of this book. The first one is proposed to assign a new job to resources in real time, without disturbing previous assignments. This approach is applied to linear and assembly production systems and is highlighted with numerical examples. How this approach can be used to control WIP is demonstrated. Secondly, another technique that permits some slight modifications to previous assignments is suggested. Interestingly, this approach has also been successfully applied to multifunction battlefield radars. [ABSTRACT FROM AUTHOR]

Many if not all goods pass though a warehouse at some stage. The main activity of a warehouse is material handling, but it may happen that some operations (packaging, cleaning, assembling, painting, etc.) are performed also during storage. These significant aspects should be included in the analyses of the warehouse systems. The chapter begins with a description of warehouse types and their usefulness. The operations performed and resources used are extensively studied. Special consideration is given to warehouse-management problems. Afterwards, the design stage is considered at length. The components of a warehouse are presented. In particular, storage in unit-load warehouses is covered. Then, the static warehouse-sizing problem is considered, modeled and solved. Later, a dynamic warehouse-sizing problem is discussed. Finally, the chapter finishes by profoundly examining two major approaches for the problem of where to locate warehouses: the single-flow and multiflow hierarchical location models. [ABSTRACT FROM AUTHOR]

The objective of this chapter is to generalize the simple line-balancing problems handled in the previous chapter. Cases with several products in variable proportions or/and stochastic operation times are analyzed. Numerical solutions based on a triangular density of probability are presented. This part of the chapter ends with an assembly-line-balancing algorithm in the most general case of probability distribution. Three models are proposed to rectify when the actual loads of stations exceed the cycle time. Another section is devoted to the introduction of parallel stations and equipment-selection problems. Some additional constraints, which arise frequently in real-life situations, are examined. Finally, two specific models are introduced: the bucket-brigade assembly line, which is a self-balancing model, and the U-shaped assembly line able to adapt to frequent changes in demand. Numerous numerical examples illustrate and explain the approaches developed in this chapter. [ABSTRACT FROM AUTHOR]

Paced assembly lines increase productivity and minimize costs in mass production. This concept is also pivotal in lean manufacturing. Thus, the chapter is devoted to these simple lines that manufacture only one type of product (or several types of products close to each other in terms of manufacturing processes). Two types of problems are analyzed: SALB-1 and SALB-2. For the former, the objective is to minimize the number of stations required to reach a given cycle time (takt time). For the latter, where the number of stations is given, the goal is to minimize the takt time. Some standard simple algorithms, such as RPW and KW, are presented. Special interest is given to the heuristic COMSOAL and its extensions. This algorithm is especially effective and easy to implement. To complete the review of existing approaches, we also present techniques based on branchand- bound, simulated annealing, tabu search and genetic algorithms. Moreover, a linear programming model is suggested, which can be straightforwardly used with standard solvers on the market. Finally, a detailed section that deals with the properties of line-balancing solutions and ways to evaluate them ends the chapter. [ABSTRACT FROM AUTHOR]

In the title of this chapter, a generic X is used to designate various core concepts of manufacturing systems that are in use in the literature and industry. Mass production or the job-shop is characterized first. This is the most ancient form of manufacturing system. Flexible manufacturing systems (FMS) appeared more recently as a reaction to worldwide competition and changeable markets. Such a system can switch automatically from one type of product to another, inside of a set of well-defined product types. Efficiency and limits of FMS are analyzed. Later, agile manufacturing systems (AMS) were introduced to deal with profound market changes as a matter of routine. AMS are compared with FMS. Reconfigurable manufacturing systems (RMS) were the most recent step towards adaptability to system configuration changes. They are discussed in detail. Another recent and popular concept is lean manufacturing systems (LMS), the emphasis of which is to systematically identify and eliminate waste from manufacturing processes, while increasing responsiveness to market changes as well as keeping the manufacturing costs as low as possible. Six core methods to implement LMS are presented and illustrated. The ideas of LMS are compared with those of FMS, AMS and RMS. [ABSTRACT FROM AUTHOR]

RFID is a big step forward when compared to bar codes. A technical description and the possible future progress of this technology are provided. The various factors to take into account when implementing RFID in a supply chain and most of the problems that can occur under these circumstances are outlined. Particular attention is paid to the use of RFID to improve inventory management. Practical applications, related to tracking the movement of goods in diverse industrial sectors, illustrate the importance of this technology. The advantages of using RFID in supply chains as well as expert opinions are highlighted. Some concepts to provide an economic evaluation are presented. Privacy concerns, which are socially important, are discussed. Moreover, some techniques to protect privacy are proposed. The chapter ends by discussing the RFID authentication issue. This includes the problem of misbehaving tags, particularly counterfeit ones. [ABSTRACT FROM AUTHOR]

The factors and reasons that motivate companies to outsource are analyzed, especially the willingness to concentrate on core competencies. The most common benefits are examined, as well as the negative side effects presented. Underlined is the difference between outsourcing in countries having similar living standards and social welfare, and those with diverging levels. Then, the outsourcing process is analyzed in detail. This includes the choice of the activity to outsource and vendors, as well as the way collaborations are negotiated and monitored. If a vendor is located in another country, the buyer should pay attention to many factors: currency exchange rates, input-price uncertainties, foreign tax rules, etc. A detailed multicriteria vendor selection and evaluation model is proposed and a solution method suggested. Then, strategic outsourcing is analyzed in a duopoly market. In addition, the common pro and con arguments for outsourcing are explained. Finally, the chapter ends with an answer to the following question: is outsourcing a harmful strategy? Note that an important part of this chapter deals with outsourcing to China. [ABSTRACT FROM AUTHOR]

In this chapter, some pricing models are presented that are characterized by the following assumptions: (i) the number of potential customers is not limited, and as a consequence, the size of the population is not a parameter of the model, (ii) only one type of item is concerned, (iii) a monopoly situation is considered, and (iv) customers buy items as soon as the price is less than or equal to the price they are prepared to pay (myopic customers). A deterministic model with time-dated items is presented and illustrated first. To build this model, the relationship between the price per item and demand has to be established. Then, the stochastic version of the same model is analyzed. A Poisson process generates customers΄ arrivals. Finally, a stochastic model with salvage value where the price is a function of inventory level is considered. Detailed algorithms, numerical examples and figures are provided for each model. These models provide practical insights into pricing mechanisms. [ABSTRACT FROM AUTHOR]

The major industrial problems and various effective approaches of inventory control in supply chains are presented and analyzed. A large place is reserved for the bullwhip effect and the corresponding methods to reduce its negative consequences along the supply chain. Many other interesting topics are treated including stochastic inventory control, echelon stock policies and their applications. Some original lot-sizing methods for single and multiproduct cases are also suggested. Of special interest is the presentation of novel pull control strategies as for example, base stock policy, CONWIP, generalized and extended Kanban. There are a lot of illustrative examples, algorithms and professional recommendations for practical utilization. [ABSTRACT FROM AUTHOR]

Price is a major parameter that affects company revenue significantly. This is why this book starts by presenting basic pricing concepts. The strategies, such as for instance, market segmentation, discount strategy, revenue management, price skimming, are developed and illustrated. Particular attention is paid to the relationships among margin, price and selling level. Then, the impact of prices on selling volume is analyzed, and the notion of a selling curve is introduced. Related pricing methods are presented such as price testing, cost-plus method, involvement of experts, market analysis and customer surveying. Included in the last category is the conjoint measurement concerned with finding what parameters of the items are important to customers. The profile method and a simplified version, the two-factor method, are also detailed and illustrated. They provide a set of partworths (i.e., numerical values) for each tester. In other words, the opinion of each tester can be represented by a point in a space whose dimension is the number of part-worths. By applying a clustering method, specifically K-mean analysis, we obtain a limited number of clusters, each of them representing a market segment. The chapter ends with the introduction of price strategies in oligopoly markets. [ABSTRACT FROM AUTHOR]