Unfulfilled-order-rate in Production Planning System by Advance Demand Information

Abstract

We try to model 'Naiji System' which is an unique corporation between a maker and suppliers in Japan. This model is formulated as a nonlinear stochastic programming problem which minimizes the sum of production cost and inventory holding cost subject to the set of probabilistic constraint and some linear production constraints. We propose the new upper bound to estimate the unfulfilled-orde-ratemore strictly. Finally, it is shown that the indicator is so practical for some applications.