Lot streaming with supplier-manufacturer coordination

Chung Lun Li, Wen Qiang Xiao

Research output: Journal article publicationJournal articleAcademic researchpeer-review

19 Citations (Scopus)


Lot splitting refers to breaking a production lot into smaller sublots during production. Coordinating lot splitting decisions across multiple stages of a production process is a challenging task. Traditional lot splitting and lot streaming models implicitly assume that the entire system is operated and owned by the same firm, or there exists a coordinator who controls the operation of all machines in the system. In this paper, we consider the situation where the machines in a multiple-stage production process are owned and managed by different companies. Every item in a given production lot has to go through the processing by the supplier's machine, followed by the manufacturer's machine, and so on. We develop and analyze coordination mechanisms that enable different parties in the supply chain to coordinate their lot splitting decisions so as to achieve a systemwide optimum.
Original languageEnglish
Pages (from-to)522-542
Number of pages21
JournalNaval Research Logistics
Issue number4
Publication statusPublished - 1 Jun 2004


  • Coordination
  • Lot splitting
  • Lot streaming
  • Supply chain scheduling

ASJC Scopus subject areas

  • Management Science and Operations Research

Cite this