Dynamic algorithms for order acceptance and capacity planning within a multi-project environment.

Algorithms; Algorithm; Order; Order acceptance; Capacity planning; Planning; multi-project; International; Scheduling; Theory; Applications;

Job selection in heavily loaded shop

Cataloged from PDF version of article.Recently, Slotnick and Morton address a job selection problem in a heavily loaded shop, where a tradeoff is sought between the reward obtained when a job is accepted for processing and the lateness penalty incurred when such a job is actually delivered. They provide a branch and bound algorithm and a couple of heuristics for the problem's solution. They do not;however, resolve the issue of problem complexity. In this note. we first establish that the problem is NP-hard. We then go on to provide two pseudo-polynomial time algorithms which also show that the problem is solvable in polynomial time if either the job processing times or the job weights for the lateness penalty are equal. We further provide a fully polynomial time approximation scheme which always generates a solution within a specified percentage of the optimal. Copyright © 1997 Elsevier Science Lt

Project portfolio management: capacity allocation, downsizing decisions and sequencing rules.

This paper aims to gain insight into capacity allocation, downsizing decisions and sequencing rules when managing a portfolio of projects. By downsizing, we mean reducing the scale or size of a project and thereby changing the project's content. In previous work, we have determined the amount of critical capacity that is optimally allocated to concurrently executed projects with deterministic or stochastic workloads when the impact of downsizing is known. In this paper, we extend this view with the possibility of sequential processing, which implies that a complete order is imposed on the projects. When projects are sequenced instead of executed in parallel, two effects come into play: firstly, unused capacity can be shifted to later projects in the same period; and secondly, reinvestment revenues gain importance because of the differences in realization time of the sequenced projects. When project workloads are known, only the second effect counts; when project workloads are stochastic, however, the project's capacity usage is uncertain so that unused capacity can be shifted to later projects in the same period. In this case, both effects need to be taken into account. In this paper, we determine optimal sequencing rules when the selection and capacity-allocation decisions for a set of projects have already been made. We also consider a combination of parallel and sequential planning and we perform simulation experiments that confirm the appropriateness of our capacity-allocation methods.Project portfolio management; Downsizing; Sequencing;

Dynamic order acceptance and capacity planning within a multi-project environment.

We present a tactical decision model for order acceptance and capacity planning that maximizes the expected profits from accepted orders, allowing for regular as well as nonregular capacity.We apply stochastic dynamic programming to determine a profit threshold for the accept/reject decision as well as an optimal capacity allocation for accepted projects, both with an eye on maximizing the expected revenues within the problem horizon.We derive a number of managerial insights based on an analysis of the influence of project and environmental characteristics on optimal project selectionand capacity usage.Capacity planning; multi-project; Order acceptance; Stochastic dynamic programming;

Order acceptance and scheduling in a single-machine environment: exact and heuristic algorithms.

In this paper, we develop exact and heuristic algorithms for the order acceptance and scheduling problem in a single-machine environment. We consider the case where a pool consisting of firm planned orders as well as potential orders is available from which an over-demanded company can select. The capacity available for processing the accepted orders is limited and orders are characterized by known processing times, delivery dates, revenues and the weight representing a penalty per unit-time delay beyond the delivery date promised to the customer. We prove the non-approximability of the problem and give two linear formulations that we solve with CPLEX. We devise two exact branch-and-bound procedures able to solve problem instances of practical dimensions. For the solution of large instances, we propose six heuristics. We provide a comparison and comments on the efficiency and quality of the results obtained using both the exact and heuristic algorithms, including the solution of the linear formulations using CPLEX.Order acceptance; Scheduling; Single machine; Branch-and-bound; Heuristics; Firm planned orders;

An order acceptance using FAHP and TOPSIS methods: A case study of Iranian vehicle belt production industry

Decisions related to acceptance or rejection of orders play an important role in companies engaged in make-to-order production. The incoming orders have a specific delivery date by which the customer expects the due date to be met and the order delivered. In some cases the level of input orders exceeds beyond the existing capacity. In such situations the main concern is to decide which orders must be accepted and which ones rejected taking into account the available production capacity. This paper prioritises the input orders according to a comprehensive and systematic multi criteria decision making (MCDM) model. It then proceeds with making decisions to either accept or reject orders according to the calculated prioritises and production constraints. Ultimately the optimum list of orders for acceptance is determined. The proposed model is a combination of two techniques of Fuzzy Analytical Hierarchy Process (FAHP) and Technique for Order Preference by Similarity to an Ideal Solution (TOPSIS). In this model FAHP is used to determine the weights of criteria and TOPSIS is used for prioritizing the orders. Finally the proposed model is tested for its efficiency by application to a real case

Order Acceptance and Scheduling: A Taxonomy and Review

Over the past 20 years, the topic of order acceptance has attracted considerable attention from those who study scheduling and those who practice it. In a firm that strives to align its functions so that profit is maximized, the coordination of capacity with demand may require that business sometimes be turned away. In particular, there is a trade-off between the revenue brought in by a particular order, and all of its associated costs of processing. The present study focuses on the body of research that approaches this trade-off by considering two decisions: which orders to accept for processing, and how to schedule them. This paper presents a taxonomy and a review of this literature, catalogs its contributions and suggests opportunities for future research in this area

Available-to-promise (ATP) systems: a classification and framework for analysis

Available-to-promise (ATP) systems deal with a number of managerial decisions related to order capture activities in a company, including order acceptance/rejection, due date setting, and resource scheduling. These different but interrelated decisions have often been studied in an isolated manner, and, to the best of our knowledge, no framework has been presented to integrate them into the broader perspective of order capture. This paper attempts to provide a general framework for ATP-related decisions. By doing so, we: (1) identify the different decision problems to be addressed; (2) present the different literature-based models supporting related decisions into a coherent framework; and (3) review the main contributions in the literature for each one of these. We first describe different approaches for order capture available in the literature, depending on two parameters related to the application context of ATP systems, namely the inclusion of explicit information about due dates in the decision model, and the level of integration among decisions. According to these parameters, up to six approaches for ATP-related decisions are identified. Secondly, we show the subsequent decision problems derived from the different approaches, and describe the main issues and key references involving each one of these decision problems. Finally, a number of conclusions and future research lines are discussed.Ministerio de Ciencia e Innovación DPI2007-6134