an article by Xiaoming Li, V. Sridharan, John J. Kanet and Yifeng Zhang published in International Journal of Advanced Operations Management Volume 3 Number 2 (2011)
Abstract
We consider the problem of assigning job due-dates when the objective is to minimise the total expected earliness and tardiness penalty. This type of problem is important because modern production and distribution systems discourage both tardy and early deliveries. This paper extends a general due-date policy, the so-called SL rule, to incorporate not only tardiness but also earliness. We provide optimal policy parameters for the linear and quadratic penalty cases in an M/M/1 system.
Hazel’s comment:
I’m not sure that I understand the maths that these writers use to work out an answer to the problem but I do, thanks to the now defunct local business club, understand the problem.
Morrisons supermarket has a large distribution warehouse locally and following one of our meetings we were able to see just how the early and/or late arrival of lorry-loads of fruit and veg can provide a real headache for the planners who have to get the fresh food out to the stores.
Not so bad with dry or frozen goods but still a problem.
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