Operations sequencing for a multi-stage production inventory system

Jim Junmin Shi, Xiaohang Yue, Yao Zhao

Research output: Contribution to journalArticlepeer-review

7 Scopus citations


This article studies operations sequencing for a multi-stage production inventory system with lead times under predictable (deterministic) yield losses and random demand. We consider various cases with either full or partial release of work-in-process inventories, for either pre-operation or post-operation cost structures, and under either the total discounted or average cost criteria. We derive necessary and sufficient criteria for the optimal sequence of operations in all cases. While the criteria differ in their specific forms, they all lead to the same principal: those operations with (1) lower yields, (2) lower processing costs, (3) longer lead times, and (4) lower inventory holding costs should be placed higher upstream in the system.

Original languageEnglish (US)
Pages (from-to)144-154
Number of pages11
JournalNaval Research Logistics
Issue number2
StatePublished - Mar 2014

All Science Journal Classification (ASJC) codes

  • Modeling and Simulation
  • Ocean Engineering
  • Management Science and Operations Research


  • lead times
  • multi-echelon inventory system
  • operations sequencing
  • yield loss


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