Reducing schedule nervousness in production and operations under non-stationary stochastic demand: The case of an airline catering company

摘要

Schedule nervousness is a change in planned MPS that caused actual operations to be different and that will result in a disruption in the production and distribution system. Uncertainty in demand was proved to be one of its major causes. The airline catering industry is one of the most highly nervousness-sensitive industries since their future demand is not deterministic but rather considered as a random variable or referred to as non-stationary stochastic demand. This is because the exact order quantity depends on the passenger numbers which are only confirmed minutes prior to departure time. So the objectives of this paper are to compare effectiveness of the current planning policy for reducing an uncertainty in demand of the case study company with a well-known MILP for solving stochastic lot-sizing problem, Tarim and Kingsman's MILP. An obtained solution from both compare its probability of causing a negative closing inventory.