A Production Planning Model For Reconfigurable Lines

A key indicator of the efficiency of a production line is cyclic idle time.  Manufacturers use heuristic line balancing techniques to determine the allocation of elemental tasks to workers so as to minimize labor costs.  The productive, i.e. non-idle, portion of each cycle then reflects the efficiency of the line.  Line balancing techniques determine the allocation of tasks based on a pre-specified throughput.  When demand changes however, the line may have to be reconfigured to reflect the new desired flow rate, resulting possibly in a lower efficiency and a higher per-unit labor cost.  This raises an interesting question: should one use a flow rate that corresponds to the higher efficiency, handling any mismatch with demand through the use of inventory or backordering, or should the aim be to match flow rate precisely with demand rate even though the resulting efficiency might be lower?  This paper proposes an answer to this question by embedding line balance and efficiency into the framework of a well-known production planning model.  A heuristic method for solving the extended model is developed, and its application demonstrated using numerical examples.

A review of discrete-time optimization models for tactical production planning

This is an Accepted Manuscript of an article published in International Journal of Production Research on 27 Mar 2014, available online: http://doi.org/10.1080/00207543.2014.899721[EN] This study presents a review of optimization models for tactical production planning. The objective of this research is to identify streams and future research directions in this field based on the different classification criteria proposed. The major findings indicate that: (1) the most popular production-planning area is master production scheduling with a big-bucket time-type period; (2) most of the considered limited resources correspond to productive resources and, to a lesser extent, to inventory capacities; (3) the consideration of backlogs, set-up times, parallel machines, overtime capacities and network-type multisite configuration stand out in terms of extensions; (4) the most widely used modelling approach is linear/integer/mixed integer linear programming solved with exact algorithms, such as branch-and-bound, in commercial MIP solvers; (5) CPLEX, C and its variants and Lindo/Lingo are the most popular development tools among solvers, programming languages and modelling languages, respectively; (6) most works perform numerical experiments with random created instances, while a small number of works were validated by real-world data from industrial firms, of which the most popular are sawmills, wood and furniture, automobile and semiconductors and electronic devices.This study has been funded by the Universitat Politècnica de València projects: ‘Material Requirement Planning Fourth Generation (MRPIV)’ (Ref. PAID-05-12) and ‘Quantitative Models for the Design of Socially Responsible Supply Chains under Uncertainty Conditions. Application of Solution Strategies based on Hybrid Metaheuristics’ (PAID-06-12).Díaz-Madroñero Boluda, FM.; Mula, J.; Peidro Payá, D. (2014). A review of discrete-time optimization models for tactical production planning. International Journal of Production Research. 52(17):5171-5205. doi:10.1080/00207543.2014.899721S51715205521

Capacitated Multi-Item Lot-Sizing Problems with Time Windows

International audienceThis research concerns a new family of capacitated multi-item lot-sizing problems, namely, lot-sizing problems with time windows. Two classes of the problem are analyzed and solved using different Lagrangian heuristics. Capacity constraints and a subset of time window constraints are relaxed resulting in particular single-item time window problems that are solved in polynomial time. Other relaxations leading to the classical Wagner-Whitin problem are also tested. Several smoothing heuristics are implemented and tested, and their results are compared. The gaps between lower and upper bounds for most problems are very small (less than 1%). Moreover, the proposed algorithms are robust and do not seem to be too affected when different parameters of the problem are varied

A genetic algorithm for the capacitated lot sizing problem with setup times.

Chen, Jiayi.Thesis (M.Phil.)--Chinese University of Hong Kong, 2009.Includes bibliographical references (p. 86-94).Abstract also in Chinese.Abstract --- p.iAcknowledgement --- p.ivIntroduction --- p.1Chapter 1.1 --- Introduction to the Capacitated Lot Sizing (CLS )problem --- p.1Chapter 1.2 --- Our contributions --- p.2Chapter 1.3 --- Organization of the thesis --- p.4Literature Review --- p.5Chapter 2.1 --- Research in CLS problem --- p.5Chapter 2.1.1 --- Reviews in CLS problems --- p.8Chapter 2.1.2 --- Approaches and methods to solve the traditional CLS problems --- p.9Chapter 2.1.3 --- Research on Fixed-Charge-Transportation-typed models for CLS problems --- p.13Chapter 2.2 --- Research in Genetic Algorithm (GA) --- p.15Chapter 2.3 --- Conclusion --- p.17Problem Description and Formulation --- p.18Chapter 3.1 --- The formulation --- p.18Chapter 3.2 --- Comparison with the traditional formulation --- p.24Chapter 3.3 --- Conclusion --- p.28Description of the Heuristic --- p.29Chapter 4.1 --- Initialization --- p.32Chapter 4.1.1 --- Setup string generation --- p.32Chapter 4.1.2 --- Transportation problem --- p.35Chapter 4.1.3 --- Consistency test --- p.47Chapter 4.2 --- Selection --- p.50Chapter 4.3 --- Crossover --- p.50Chapter 4.4 --- Mutation --- p.52Chapter 4.5 --- Evaluation --- p.53Chapter 4.6 --- Termination --- p.54Chapter 4.7 --- Conclusion --- p.54Design of Experiments and Computational Results --- p.56Chapter 5.1 --- Design of experiments --- p.57Chapter 5.2 --- Discussion of lower bound procedures --- p.63Chapter 5.3 --- Computational results --- p.65Chapter 5.3.1 --- CLS problems with setup times --- p.65Chapter 5.3.2 --- CLS problems without setup times --- p.77Chapter 5.4 --- Conclusion --- p.82Conclusion --- p.83Bibliography --- p.8

Multi-level production planning with raw-material perishability and inventory bounds

This thesis focuses on studying one of the most important and fundamental links in supply chain management: production planning. A considerably common assumptions in most of the production planning research literature is that the intermediate items involved in the production process have unlimited lifespans, meaning they can be stored and used indefinitely. In real life applications, whether referring to physical exhaustion, loss of functionality, or obsolescence, most items deteriorate over time and cannot be stored infinitely without enforcing specific constraints on a set of crucial production planning decisions. This is specially the case for multi-level production structures. In the thesis, we first introduce the fundamental characteristics in production planning modeling and discuss some of the common elements and assumptions used to model complex production planning problems. We also present an overview of the production planning research evolution. Our attention is then focused on the most relevant modeling approaches for perishability in production planning available in the research literature. We present lot-sizing problems that incorporate raw-material perishability and analyze how these considerations enforce specific constraints on a set of fundamental decisions. Three variants of the two-level lot-sizing problem are studied: with fixed raw-material shelf-life, with raw-material functionality deterioration, and with functionality and volume deterioration. We propose mixed-integer programming formulations for each of these variants and perform computational experiments with sensitivity analyses, showing the added value of explicitly incorporating perishability considerations into production planning problems. Using a Silver-Meal-based rolling-horizon algorithm, we develop a sequential approach to solve the studied problems and compare the results with our proposed formulations. We then shift our attention to study the multi-item, multi-level lot-sizing problem with raw-material perishability and batch ordering, inspired by an application in advanced composite manufacturing processes. We proposed a mixed-integer programming formulation for the problem and perform computational experiments with sensitivity analyses, demonstrating its potentials for practical applications in planning composite production. Finally, we address the study of production planning involving inventory bounds. This characteristic is shown to be related to the perishable raw-material considerations and constitutes another fundamental aspect of this family of problems. We study the multi-item uncapacitated lot-sizing problem with inventory bounds, presenting a new mixed-integer programming formulation for the case of non-speculative (Wagner-Whitin) cost structure using a special set of variables to determine the production intervals for each item. We then reformulate the problem using a variable-splitting technique that allows for a Dantzig-Wolfe decomposition. The Dantzig-Wolfe principle exploits the structure of the problem by decomposing it into two sub-problems: one relating to the production decisions per item and another that relates to the inventory decisions per period. We propose a Column Generation algorithm for solving the Dantzig-Wolfe reformulation. Computational experiments are performed to evaluate the proposed formulations and algorithms on a set of benchmark instances. This research presents important contributions on a variety of fields related to production planning that had only been partially studied in the literature. It also opens important research paths for the integration of different types of raw-material perishability in multi-level product structures processes, with the study of finished product inventory bounds

Effects of distribution planning systems on the cost of delivery in unique make-to-order manufacturing

This thesis investigates the effects of simulation through the use of a distribution planning system (DPS) on distribution costs in the setting of unique make-to-order manufacturers (UMTO). In doing so, the German kitchen furniture industry (GKFI) serves as an example and supplier of primary data. On the basis of a detailed market analysis this thesis will demonstrate that this industry, which mostly works with its own vehicles for transport, is in urgent need of innovative logistics strategies. Within the scope of an investigation into the current practical and theoretical use of DPS, it will become apparent that most known DPS are based on the application of given or set delivery tour constraints. Those constraints are often not questioned in practice and in theory nor even attempted to be omitted, but are accepted in day-to-day operation. This paper applies a different approach. In the context of this research, a practically applied DPS is used supportively for the removal of time window constraints (TWC) in UMTO delivery. The same DPS is used in ceteris paribus condition for the re-routing of deliveries and hereby supports the findings regarding the costliness of TWC. From this experiment emerges an overall cost saving of 50.9% and a 43.5% reduction of kilometres travelled. The applied experimental research methodology and the significance of the resulting savings deliver the opportunity to analyse the removal of delivery time window restrictions as one of many constraints in distribution logistics. The economic results of this thesis may become the basis of discussion for further research based on the applied methodology. From a practical point of view, the contributions to new knowledge are the cost savings versus the change of demand for the setting of TWC between the receiver of goods and the UMTO supplier. On the side of theoretical knowledge, this thesis contributes to filling the gap on the production – distribution problem from a UMTO perspective. Further contributions to knowledge are delivered through the experimental methodology with the application of a DPS for research in logistics simulation

MRP IV: Planificación de requerimientos de materiales cuarta generación. Integración de la planificación de la producción y del transporte de aprovisionamiento

Tesis por compendioEl sistema de planificación de requerimientos de materiales o MRP (Material Requirement Planning), desarrollado por Orlicky en 1975, sigue siendo en nuestros días y, a pesar de sus deficiencias identificadas, el sistema de planificación de la producción más utilizado por las empresas industriales. Las evoluciones del MRP se vieron reflejadas en el sistema MRPII (Manufacturing Resource Planning), que considera restricciones de capacidad productiva, MRPIII (Money Resource Planning), que introduce la función de finanzas; y la evolución comercial del mismo en el ERP (Enterprise Resource Planning), que incorpora modularmente todas las funciones de la empresa en un único sistema de decisión, cuyo núcleo central es el MRP. Los desarrollos posteriores de los sistemas ERP han incorporado las nuevas tecnologías de la información y comunicaciones. Asimismo, éstos se han adaptado al contexto económico actual caracterizado por la globalización de los negocios y la deslocalización de los proveedores desarrollando otras funciones como la gestión de la cadena de suministro o del transporte, entre otros. Por otro lado, existen muchos trabajos en la literatura académica que han intentado resolver algunas de las debilidades del MRP tales como la optimización de los resultados, la consideración de la incertidumbre en determinados parámetros, el inflado de los tiempos de entrega, etc. Sin embargo, tanto en el ámbito comercial como en el científico, el MRP y sus variantes se centran en el requerimiento de los materiales y en la planificación de las capacidades de producción, lo que es su desventaja principal en aquellas cadenas de suministro donde existe una gran deslocalización de los proveedores de materias primas y componentes. En estos entornos, la planificación del transporte adquiere un protagonismo fundamental, puesto que los elevados costes y las restricciones logísticas suelen hacer subóptimos e incluso infactibles los planes de producción propuestos, siendo la re-planificación manual una práctica habitual en las empresas. Esta tesis doctoral propone un modelo denominado MRPIV, que considera de forma integrada las decisiones de la planificación de materiales, capacidades de recursos de producción y el transporte, con las restricciones propias de este último, tales como diferentes modos de recogida (milk-run, camión completo, rutas) en la cadena de suministro con el objetivo de evitar la suboptimización de estos planes que en la actualidad se generan usualmente de forma secuencial e independiente. El modelo propuesto se ha validado en una cadena de suministro del sector del automóvil confirmando la reducción de costes totales y una planificación más eficiente del transporte de los camiones necesarios para efectuar el aprovisionamiento.Díaz-Madroñero Boluda, FM. (2015). MRP IV: Planificación de requerimientos de materiales cuarta generación. Integración de la planificación de la producción y del transporte de aprovisionamiento [Tesis doctoral no publicada]. Universitat Politècnica de València. https://doi.org/10.4995/Thesis/10251/48524TESISCompendi