719 research outputs found

    Modeling Industrial Lot Sizing Problems: A Review

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    In this paper we give an overview of recent developments in the field of modeling single-level dynamic lot sizing problems. The focus of this paper is on the modeling various industrial extensions and not on the solution approaches. The timeliness of such a review stems from the growing industry need to solve more realistic and comprehensive production planning problems. First, several different basic lot sizing problems are defined. Many extensions of these problems have been proposed and the research basically expands in two opposite directions. The first line of research focuses on modeling the operational aspects in more detail. The discussion is organized around five aspects: the set ups, the characteristics of the production process, the inventory, demand side and rolling horizon. The second direction is towards more tactical and strategic models in which the lot sizing problem is a core substructure, such as integrated production-distribution planning or supplier selection. Recent advances in both directions are discussed. Finally, we give some concluding remarks and point out interesting areas for future research

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

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    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

    Essays on Shipment Consolidation Scheduling and Decision Making in the Context of Flexible Demand

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    This dissertation contains three essays related to shipment consolidation scheduling and decision making in the presence of flexible demand. The first essay is presented in Section 1. This essay introduces a new mathematical model for shipment consolidation scheduling for a two-echelon supply chain. The problem addresses shipment coordination and consolidation decisions that are made by a manufacturer who provides inventory replenishments to multiple downstream distribution centers. Unlike previous studies, the consolidation activities in this problem are not restricted to specific policies such as aggregation of shipments at regular times or consolidating when a predetermined quantity has accumulated. Rather, we consider the construction of a detailed shipment consolidation schedule over a planning horizon. We develop a mixed-integer quadratic optimization model to identify the shipment consolidation schedule that minimizes total cost. A genetic algorithm is developed to handle large problem instances. The other two essays explore the concept of flexible demand. In Section 2, we introduce a new variant of the vehicle routing problem (VRP): the vehicle routing problem with flexible repeat visits (VRP-FRV). This problem considers a set of customers at certain locations with certain maximum inter-visit time requirements. However, they are flexible in their visit times. The VRP-FRV has several real-world applications. One scenario is that of caretakers who provide service to elderly people at home. Each caretaker is assigned a number of elderly people to visit one or more times per day. Elderly people differ in their requirements and the minimum frequency at which they need to be visited every day. The VRP-FRV can also be imagined as a police patrol routing problem where the customers are various locations in the city that require frequent observations. Such locations could include known high-crime areas, high-profile residences, and/or safe houses. We develop a math model to minimize the total number of vehicles needed to cover the customer demands and determine the optimal customer visit schedules and vehicle routes. A heuristic method is developed to handle large problem instances. In the third study, presented in Section 3, we consider a single-item cyclic coordinated order fulfillment problem with batch supplies and flexible demands. The system in this study consists of multiple suppliers who each deliver a single item to a central node from which multiple demanders are then replenished. Importantly, demand is flexible and is a control action that the decision maker applies to optimize the system. The objective is to minimize total system cost subject to several operational constraints. The decisions include the timing and sizes of batches delivered by the suppliers to the central node and the timing and amounts by which demanders are replenished. We develop an integer programing model, provide several theoretical insights related to the model, and solve the math model for different problem sizes

    A delayed differentiation multi-product FPR model with scrap and a multi-delivery policy – I: Using single-machine production scheme

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    This study examines a delayed differentiation multi-product single-machine finite production rate (FPR) model with scrap and a multi-delivery policy. The classic FPR model considers a single product, single stage production with all items manufactured being of perfect quality and product demand satisfied by a continuous inventory issuing policy. However, in real-life production-shipment integrated systems, multi-product production is usually adopted by vendors to maximize machine utilization, and generation of scrap items appear to be inevitable with uncontrollable factors in production. Further, distribution of finished products is often done through a periodic or multi-delivery policy rather than a continuous issuing policy. It is also assumed that these multiple products share a common intermediate part. In this situation, the producer would often be interested in evaluating a two-stage production scheme with the first stage producing common parts for all products and the second stage separately fabricating the end products to lower overall production-inventory costs and shorten the replenishment cycle time. Redesigning a multi-product FPR system to delay product differentiation to the final stage of production has proved to be an effective supply chain strategy from an inventory-reduction standpoint. Using mathematical modelling, we derive the optimal replenishment cycle time and delivery policy. A numerical example is provided to demonstrate its practical usage and compare our result to that obtained from the traditional single-stage multi-product FPR model

    Models and algorithms for coordinated lot-sizing and joint replenishment

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    Combined make-to-order and make-to-stock in a food production system

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    The research into multi-product production/inventory control systems has mainly assumed one of the two strategies: Make-to-Order (MTO) or Make-to-Stock (MTS). In practice, however, many companies cater to an increasing variety of products with varying logistical demands (e.g. short due dates, specific products) and production characteristics (e.g. capacity usage, setup) to different market segments and so they are moving to more MTO-production. As a consequence they operate under a hybrid MTO-MTS strategy. Important issues arising out of such situations are, for example, which products should be manufactured to stock and which ones on order and, how to allocate capacity among various MTO-MTS products. This paper presents the state-of-the-art literature review of the combined MTO-MTS production situations. A variety of production management issues in the context of food processing companies, where combined MTO-MTS production is quite common, are discussed in details. The authors propose a comprehensive hierarchical planning framework that covers the important production management decisions to serve as a starting point for evaluation and further research on the planning system for MTO-MTS situations.

    Meta-Heuristics for Dynamic Lot Sizing: a review and comparison of solution approaches

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    Proofs from complexity theory as well as computational experiments indicate that most lot sizing problems are hard to solve. Because these problems are so difficult, various solution techniques have been proposed to solve them. In the past decade, meta-heuristics such as tabu search, genetic algorithms and simulated annealing, have become popular and efficient tools for solving hard combinational optimization problems. We review the various meta-heuristics that have been specifically developed to solve lot sizing problems, discussing their main components such as representation, evaluation neighborhood definition and genetic operators. Further, we briefly review other solution approaches, such as dynamic programming, cutting planes, Dantzig-Wolfe decomposition, Lagrange relaxation and dedicated heuristics. This allows us to compare these techniques. Understanding their respective advantages and disadvantages gives insight into how we can integrate elements from several solution approaches into more powerful hybrid algorithms. Finally, we discuss general guidelines for computational experiments and illustrate these with several examples
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