Supply Chain Production Planning Modeling Facility Lead Time and Quality of Service

We propose a decision support framework for the Supply Chain management of a manufacturing enterprise. It utilizes structured inforiation sharing between a fluid approximation Master-Problem and facility specific Sub-Problems. We optimize weekly production schedules that minimize inventory and backlog costs subject to non-linear constraints on production imposed by weekly varying dynamic lead-times and inter-facility quality of service driven inventory hedging policies. Computational experience demonstrates that it is possible to achieve the same quality of service with significantly lower inventory and system times relative to static lead-time state of the art industry practice.