##
**Logistics of production and inventory.**
*(English)*
Zbl 0798.90028

Handbooks in Operations Research and Management Science. 4. Amsterdam: North-Holland. xiii, 760 p. (1993).

[The articles of this volume will not be indexed individually.]

This book presents a broad state-of-the-art survey in logistics research. It collects 14 chapters, specially written by renowned scholars, covering virtually all topics in this broad field, as shortly described below.

Chapter 1, “Single product, single location models”, by H. Lee and S. Nahmias, describe the basic models in inventory management: constant demand rates, deterministically varying demand and stochastic demand, both with periodic and continuous review. Chapter 2, “Analysis of multistage production systems”, by J. A. Muckstadt and R. O. Roundy, reviews optimization models and approximation algorithms with provable performance bounds (no efficient optimality guaranteeing methods are known) to determine consistent and realistic reorder intervals in deterministic production systems with a serial, assembly, distribution or more general structure. Chapter 3,“Centralized planning models for multi-echelon inventory systems under uncertainty”, by A. Federgruen, takes a similar approach to solving the stochastic situation, in PUSH-systems, i.e. where replenishment decisions are taken centrally on the basis of global information, either continuously or periodically available, about all inventories of all products of all facilities. Chapter 4, “Continuous review policies for multi-level inventory systems with stochastic demand”, by S. Axsäter, moves on to PULL-systems, i.e. with decentralized control, where replenishment decisions are locally taken using local information. Emphasis lies on two-level systems and consumable items. Chapter 5, “Performance evaluation of production networks”, by R. Suri, J. L. Sanders and M. Kamath, discusses analytical models for a “quick” assessment (as opposed to simulation techniques) of performance of discrete manufacturing systems, where products are worked on individually or in batches, thereby visiting several machines. Typically techniques from stochastic processes, queueing and reliability are used. Chapter 6, “Manufacturing lead times, order release and capacity loading”, by U. S. Karmarkar, develops the interrelations between these insufficiently studied notions and indicates decision models incorporating lead times, together with avenues of further research. L. J. Thomas and J. O. McClain give “an overview of production planning” in Chapter 7, emphasizing recent developments (up to 1989), and the practical problems in the use of OR tools in this context. Many models are discussed at different levels of aggregation. In Chapter 8, “Mathematical programming models and methods for production planning and scheduling”, J. F. Shapiro convincingly conveys how the art and the science of modelling and algorithm construction may apply in specific problem solving situations. Most fields of mathematical programming are put into play: linear, network, mixed integer, nonlinear, dynamic, multiple criteria and stochastic programming. Chapter 9 by E. L. Lawler, J. K. Lenstra, A. H. G. Rinnooy Kan and D. B. Shmoys, is a high level survey of “Sequencing and scheduling: algorithms and complexity”, concentrating on both exact and approximation methods for deterministic models, covering single and parallel machines, open, flow and job shop situations.

How to capture the complexities of the many levels of decision making, as described in the foregoing chapters, and their interrelations in still manageable models is discussed by G. R. Bitran and D. Tirupati in Chapter 10, “Hierarchical production planning”. The last four chapters are devoted to recent management techniques, looked at from the point of view of the operational researcher. First K. R. Baker discusses MRP systems, (Material/Manufacturing) “Requirements planning”. Then H. Groenevelt takes a look at “The just-in-time system”, while quality and TQM is critically inspected by P. J. Kolesar in “Scientific quality management and management science”. Finally C. H. Fine looks at automation in “Developments in manufacturing technology and economic evaluation models”. This huge collection of high quality surveys, all interrelated interreferenced and still with amazingly few overlappings, will provide an excellent high- level introduction to the interested novice, a wealth of information and models to the practitioner, and an important reference source for the researcher.

This book presents a broad state-of-the-art survey in logistics research. It collects 14 chapters, specially written by renowned scholars, covering virtually all topics in this broad field, as shortly described below.

Chapter 1, “Single product, single location models”, by H. Lee and S. Nahmias, describe the basic models in inventory management: constant demand rates, deterministically varying demand and stochastic demand, both with periodic and continuous review. Chapter 2, “Analysis of multistage production systems”, by J. A. Muckstadt and R. O. Roundy, reviews optimization models and approximation algorithms with provable performance bounds (no efficient optimality guaranteeing methods are known) to determine consistent and realistic reorder intervals in deterministic production systems with a serial, assembly, distribution or more general structure. Chapter 3,“Centralized planning models for multi-echelon inventory systems under uncertainty”, by A. Federgruen, takes a similar approach to solving the stochastic situation, in PUSH-systems, i.e. where replenishment decisions are taken centrally on the basis of global information, either continuously or periodically available, about all inventories of all products of all facilities. Chapter 4, “Continuous review policies for multi-level inventory systems with stochastic demand”, by S. Axsäter, moves on to PULL-systems, i.e. with decentralized control, where replenishment decisions are locally taken using local information. Emphasis lies on two-level systems and consumable items. Chapter 5, “Performance evaluation of production networks”, by R. Suri, J. L. Sanders and M. Kamath, discusses analytical models for a “quick” assessment (as opposed to simulation techniques) of performance of discrete manufacturing systems, where products are worked on individually or in batches, thereby visiting several machines. Typically techniques from stochastic processes, queueing and reliability are used. Chapter 6, “Manufacturing lead times, order release and capacity loading”, by U. S. Karmarkar, develops the interrelations between these insufficiently studied notions and indicates decision models incorporating lead times, together with avenues of further research. L. J. Thomas and J. O. McClain give “an overview of production planning” in Chapter 7, emphasizing recent developments (up to 1989), and the practical problems in the use of OR tools in this context. Many models are discussed at different levels of aggregation. In Chapter 8, “Mathematical programming models and methods for production planning and scheduling”, J. F. Shapiro convincingly conveys how the art and the science of modelling and algorithm construction may apply in specific problem solving situations. Most fields of mathematical programming are put into play: linear, network, mixed integer, nonlinear, dynamic, multiple criteria and stochastic programming. Chapter 9 by E. L. Lawler, J. K. Lenstra, A. H. G. Rinnooy Kan and D. B. Shmoys, is a high level survey of “Sequencing and scheduling: algorithms and complexity”, concentrating on both exact and approximation methods for deterministic models, covering single and parallel machines, open, flow and job shop situations.

How to capture the complexities of the many levels of decision making, as described in the foregoing chapters, and their interrelations in still manageable models is discussed by G. R. Bitran and D. Tirupati in Chapter 10, “Hierarchical production planning”. The last four chapters are devoted to recent management techniques, looked at from the point of view of the operational researcher. First K. R. Baker discusses MRP systems, (Material/Manufacturing) “Requirements planning”. Then H. Groenevelt takes a look at “The just-in-time system”, while quality and TQM is critically inspected by P. J. Kolesar in “Scientific quality management and management science”. Finally C. H. Fine looks at automation in “Developments in manufacturing technology and economic evaluation models”. This huge collection of high quality surveys, all interrelated interreferenced and still with amazingly few overlappings, will provide an excellent high- level introduction to the interested novice, a wealth of information and models to the practitioner, and an important reference source for the researcher.

Reviewer: F.Plastria (Brussels)

### MSC:

90Bxx | Operations research and management science |

90-06 | Proceedings, conferences, collections, etc. pertaining to operations research and mathematical programming |

00B15 | Collections of articles of miscellaneous specific interest |

90-02 | Research exposition (monographs, survey articles) pertaining to operations research and mathematical programming |

90C90 | Applications of mathematical programming |