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

DYNAMIC LOT-SIZING PROBLEMS: A Review on Model and Efficient Algorithm

Due to their importance in industry, dynamic demand lot-sizing problems are frequently studied.This study consider dynamic lot-sizing problems with recent advances in problem and modelformulation, and algorithms that enable large-scale problems to be effectively solved.Comprehensive review is given on model formulation of dynamic lot-sizing problems, especiallyon capacitated lot-sizing (CLS) problem and the coordinated lot-sizing problem. Bothapproaches have their intercorrelated, where CLS can be employed for single or multilevel/stage, item, and some restrictions. When a need for joint setup replenishment exists, thenthe coordinated lot-sizing is the choice. Furthermore, both algorithmics and heuristics solutionin the research of dynamic lot sizing are considered, followed by an illustration to provide anefficient algorithm

A Review of Production Planning Models: Emerging features and limitations compared to practical implementation

In the last few decades, thanks to the interest of industry and academia, production planning (PP) models have shown significant growth. Several structured literature reviews highlighted the evolution of PP and guided the work of scholars providing in-depth reviews of optimization models. Building on these works, the contribution of this paper is an update and detailed analysis of PP optimization models. The present review allows to analyze the development of PP models by considering: i) problem type, ii) modeling approach, iii) development tools, iv) industry-specific solutions. Specifically, to this last point, a proposed industrial solution is compared to emerging features and limitations, which shows a practical evolution of such a system

A Digital Twin Framework for Production Planning Optimization: Applications for Make-To-Order Manufacturers

In this dissertation, we develop a Digital Twin framework for manufacturing systems and apply it to various production planning and scheduling problems faced by Make-To-Order (MTO) firms. While this framework can be used to digitally represent a particular manufacturing environment with high fidelity, our focus is in using it to generate realistic settings to test production planning and scheduling algorithms in practice. These algorithms have traditionally been tested by either translating a practical situation into the necessary modeling constructs, without discussion of the assumptions and inaccuracies underlying this translation, or by generating random instances of the modeling constructs, without assessing the limitations in accurately representing production environments. The consequence has been a serious gap between theory advancement and industry practice. The major goal of this dissertation is to develop a framework that allows for practical testing, evaluation, and implementation of new approaches for seamless industry adoption. We develop this framework as a modular software package and emphasize the practicality and configurability of the framework, such that minimal modelling effort is required to apply the framework to a multitude of optimization problems and manufacturing systems. Throughout this dissertation, we emphasize the importance of the underlying scheduling problems which provide the basis for additional operational decision making. We focus on the computational evaluation and comparisons of various modeling choices within the developed frameworks, with the objective of identifying models which are both effective and computationally efficient. In Part 1 of this dissertation, we consider a class of Production Planning and Execution problems faced by job shop manufacturing systems. In Part 2 of this dissertation, we consider a class of scheduling problems faced by manufacturers whose production system is dominated by a single operation

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

Comparison of different approaches to multistage lot sizing with uncertain demand

We study a new variant of the classical lot sizing problem with uncertain demand where neither the planning horizon nor demands are known exactly. This situation arises in practice when customer demands arriving over time are confirmed rather lately during the transportation process. In terms of planning, this setting necessitates a rolling horizon procedure where the overall multistage problem is dissolved into a series of coupled snapshot problems under uncertainty. Depending on the available data and risk disposition, different approaches from online optimization, stochastic programming, and robust optimization are viable to model and solve the snapshot problems. We evaluate the impact of the selected methodology on the overall solution quality using a methodology-agnostic framework for multistage decision-making under uncertainty. We provide computational results on lot sizing within a rolling horizon regarding different types of uncertainty, solution approaches, and the value of available information about upcoming demands

순서의존적 작업준비가 있는 생산계획 문제에 대한 정수 최적화 및 근사 동적 계획법 기반 해법

학위논문(박사) -- 서울대학교대학원 : 공과대학 산업공학과, 2022. 8. 이경식.Lot-sizing and scheduling problem, an integration of the two important decision making problems in the production planning phase of a supply chain, determines both the production amounts and sequences of multiple items within a given planning horizon to meet the time-varying demand with minimum cost. Along with the growing importance of coordinated decision making in the supply chain, this integrated problem has attracted increasing attention from both industrial and academic communities. However, despite vibrant research over the recent decades, the problem is still hard to be solved due to its inherent theoretical complexity as well as the evolving complexity of the real-world industrial environments and the corresponding manufacturing processes. Furthermore, when the setup activity occurs in a sequence-dependent manner, it is known that the problem becomes considerably more difficult. This dissertation aims to propose integer optimization and approximate dynamic programming approaches for solving the lot-sizing and scheduling problem with sequence-dependent setups. Firstly, to enhance the knowledge of the structure of the problem which is strongly NP-hard, we consider a single-period substructure of the problem. By analyzing the polyhedron defined by the substructure, we derive new families of facet-defining inequalities which are separable in polynomial time via solving maximum flow problems. Through the computational experiments, these inequalities are demonstrated to provide much tighter lower bounds than the existing ones. Then, using these results, we provide new integer optimization models which can incorporate various extensions of the lot-sizing and scheduling problem such as setup crossover and carryover naturally. The proposed models provide tighter linear programming relaxation bounds than standard models. This leads to the development of an efficient linear programming-based heuristic algorithm which provides a primal feasible solution quickly. Finally, we devise an approximate dynamic programming algorithm. The proposed algorithm incorporates the value function approximation approach which makes use of both the tight lower bound obtained from the linear programming relaxation and the upper bound acquired from the linear programming-based heuristic algorithm. The results of computational experiments indicate that the proposed algorithm has advantages over the existing approaches.공급망의 생산 계획 단계에서의 주요한 두 가지 단기 의사결정 문제인 Lot-sizing 문제와 Scheduling 문제가 통합된 문제인 Lot-sizing and scheduling problem (LSP)은 계획대상기간 동안 주어진 복수의 제품에 대한 수요를 최소의 비용으로 만족시키기 위한 단위 기간 별 최적의 생산량 및 생산 순서를 결정한다. 공급망 내의 다양한 요소에 대한 통합적 의사 결정의 중요성이 커짐에 따라 LSP에 대한 관심 역시 산업계와 학계 모두에서 지속적으로 증가하였다. 그러나 최근 수십 년에 걸친 활발한 연구에도 불구하고, 문제 자체가 내포하는 이론적 복잡성 및 실제 산업 환경과 제조 공정의 고도화/복잡화 등으로 인해 LSP를 해결하는 것은 여전히 어려운 문제로 남아있다. 특히 순서의존적 작업준비가 있는 경우 문제가 더욱 어려워진다는 것이 잘 알려져 있다. 본 논문에서는 순서의존적 작업준비가 있는 LSP를 해결하기 위한 정수 최적화 및 근사 동적 계획법 기반의 해법을 제안한다. 먼저, 이론적으로 강성 NP-hard에 속한다는 사실이 잘 알려진 LSP의 근본 구조에 대한 이해를 높이기 위하여 단일 기간만을 고려하는 부분구조에 대해 다룬다. 단일 기간 부분구조에 의해 정의되는 다면체에 대한 이론적 분석을 통해 새로운 유효 부등식 군을 도출하고 해당 유효 부등식들이 극대면(facet)을 정의할 조건에 대해 밝힌다. 또한, 도출된 유효 부등식들이 다항시간 내에 분리 가능함을 보이고, 최대흐름문제를 활용한 다항시간 분리 알고리듬을 고안한다. 실험 결과를 통해 제안한 유효 부등식들이 모형의 선형계획 하한강도를 높이는 데 큰 영향을 줌을 확인한다. 또한 해당 부등식들이 모두 추가된 모형과 이론적으로 동일한 하한을 제공하는 확장 수리모형(extended formulation)을 도출한다. 이를 활용하여, 실제 산업에서 발생하는 LSP에서 종종 고려하는 주요한 추가 요소들을 다룰 수 있는 새로운 수리 모형을 제안하며 해당 모형이 기존의 모형에 비해 더욱 강한 선형계획 하한을 제공함을 보인다. 이 모형을 바탕으로 빠른 시간 내에 가능해를 찾을 수 있는 선형계획 기반 휴리스틱 알고리듬을 개발한다. 마지막으로 해당 문제에 대한 근사 동적 계획법 알고리듬을 제안한다. 제안하는 알고리듬은 가치함수 근사 기법을 활용하며 특정 상태의 가치를 근사하기 위해 해당 상태에서의 근사함수의 상한 및 하한을 활용한다. 이 때, 좋은 상한 및 하한값을 구하기 위해 제안된 모형의 선형계획 완화문제와 선형계획 기반 휴리스틱 알고리듬을 사용한다. 실험 결과를 통해 제안한 알고리듬이 기존의 방법들과 비교하여 우수한 성능을 보임을 확인한다.Abstract i Contents iii List of Tables vii List of Figures ix Chapter 1 Introduction 1 1.1 Backgrounds 1 1.2 Integrated Lot-sizing and Scheduling Problem 6 1.3 Literature Review 9 1.3.1 Optimization Models for LSP 9 1.3.2 Recent Works on LSP 14 1.4 Research Objectives and Contributions 16 1.5 Outline of the Dissertation 19 Chapter 2 Polyhedral Study on Single-period Substructure of Lot-sizing and Scheduling Problem with Sequence-dependent Setups 21 2.1 Introduction 22 2.2 Literature Review 27 2.3 Single-period Substructure 30 2.3.1 Assumptions 31 2.3.2 Basic Polyhedral Properties 32 2.4 New Valid Inequalities 37 2.4.1 S-STAR Inequality 37 2.4.2 Separation of S-STAR Inequality 42 2.4.3 U-STAR Inequality 47 2.4.4 Separation of U-STAR Inequality 49 2.4.5 General Representation of the Inequalities 52 2.5 Extended Formulations 55 2.5.1 Single-commodity Flow Formulations 55 2.5.2 Multi-commodity Flow Formulations 58 2.5.3 Time-ow Formulations 59 2.6 Computational Experiments 63 2.6.1 Experiment Settings 63 2.6.2 Experiment Results on Single-period Instances 65 2.6.3 Experiment Results on Multi-period Instances 69 2.7 Summary 73 Chapter 3 New Optimization Models for Lot-sizing and Scheduling Problem with Sequence-dependent Setups, Crossover, and Carryover 75 3.1 Introduction 76 3.2 Literature Review 78 3.3 Integer Optimization Models 80 3.3.1 Standard Model (ST) 82 3.3.2 Time-ow Model (TF) 84 3.3.3 Comparison of (ST) and (TF) 89 3.3.4 Facility Location Reformulation 101 3.4 LP-based Naive Fixing Heuristic Algorithm 104 3.5 Computational Experiments 108 3.5.1 Test Instances 108 3.5.2 LP Bound 109 3.5.3 Computational Performance with MIP Solver 111 3.5.4 Performance of LPNF Algorithm 113 3.6 Summary 115 Chapter 4 Approximate Dynamic Programming Algorithm for Lot-sizing and Scheduling Problem with Sequence-dependent Setups 117 4.1 Introduction 118 4.1.1 Markov Decision Process 118 4.1.2 Approximate Dynamic Programming Algorithms 121 4.2 Markov Decision Process Reformulation 124 4.3 Approximate Dynamic Programming Algorithm 127 4.4 Computational Experiments 131 4.4.1 Comparison with (TF-FL) Model 131 4.4.2 Comparison with Big Bucket Model 134 4.5 Summary 138 Chapter 5 Conclusion 139 5.1 Summary and Contributions 139 5.2 Future Research Directions 141 Bibliography 145 Appendix A Pattern-based Formulation in Chapter 2 159 Appendix B Detailed Test Results in Chapter 2 163 Appendix C Detailed Test Results in Chapter 3 169 국문초록 173박