Tabu search to solve the Synchronized and Integrated Two-Level Lot Sizing and Scheduling Problem

This paper proposes a tabu search approach to solve the Synchronized and Integrated Two-Level Lot Sizing and Scheduling Problem (SITLSP). It is a real-world problem, often found in soft drink companies, where the production process has two integrated levels with decisions concerning raw material storage and soft drink bottling. Lot sizing and scheduling of raw materials in tanks and products in bottling lines must be simultaneously determined. Real data provided by a soft drink company is used to make comparisons with a previous genetic algorithm. Computational results have demonstrated that tabu search outperformed genetic algorithm in all instances. Copyright 2011 ACM.

A hybrid multi-population genetic algorithm applied to solve the multi-level capacitated lot sizing problem with backlogging

The present paper proposes a new hybrid multi-population genetic algorithm (HMPGA) as an approach to solve the multi-level capacitated lot sizing problem with backlogging. This method combines a multi-population based metaheuristic using fix-and-optimize heuristic and mathematical programming techniques. A total of four test sets from the MULTILSB (Multi-Item Lot-Sizing with Backlogging) library are solved and the results are compared with those reached by two other methods recently published. The results have shown that HMPGA had a better performance for most of the test sets solved, specially when longer computing time is given. © 2012 Elsevier Ltd.

A priori reformulations for joint rolling-horizon scheduling of materials processing and lot-sizing problem

In many production processes, a key material is prepared and then transformed into different final products. The lot sizing decisions concern not only the production of final products, but also that of material preparation in order to take account of their sequence-dependent setup costs and times. The amount of research in recent years indicates the relevance of this problem in various industrial settings. In this paper, facility location reformulation and strengthening constraints are newly applied to a previous lot-sizing model in order to improve solution quality and computing time. Three alternative metaheuristics are used to fix the setup variables, resulting in much improved performance over previous research, especially regarding the use of the metaheuristics for larger instances. © 2013 Elsevier Ltd. All rights reserved.

The integrated lot sizing and cutting stock problem in a furniture factory

This work studies the integrated lot sizing and cutting stock problem, where the goal is to capture the dependency that exists between two important decisions in the production process, in order to economize raw materials and also reduce production and inventory costs. The integrated lot sizing and cutting stock problem is studied in a small furniture factory that produces wardrobes, dressing tables and cupboards and the lot sizing and cutting stock decisions are taken by the production manager. A column-generation technique is used to solve a linear relaxation of the proposed model. The computational results, using real data from the factory, show that it is possible to reduce total inventory and raw material costs when integrated planning is used. © 2013 IFAC.

Production lot sizing and scheduling with non-triangular sequence-dependent setup times

Coordenação de Aperfeiçoamento de Pessoal de Nível Superior (CAPES)

Reformulation and a Lagrangian heuristic for lot sizing problem on parallel machines

Fundação de Amparo à Pesquisa do Estado de São Paulo (FAPESP)

Integrated cutting machine programming and lot sizing in furniture industry

In this paper a mathematical model that combines lot-sizing and cutting-stock problems applied to the furniture industry is presented. The model considers the usual decisions of the lot sizing problems, as well as operational decisions related to the cutting machine programming. Two sets of a priori generated cutting patterns are used, industry cutting patterns and a class of n-group cutting patterns. A strategy to improve the utilization of the cutting machine is also tested. An optimization package was used to solve the model and the computational results, using real data from a furniture factory, show that a small subset of n-group cutting patterns provides good results and that the cutting machine utilization can be improved by the proposed strategy.

Hybrid methods for lot sizing on parallel machines

Fundação de Amparo à Pesquisa do Estado de São Paulo (FAPESP)

Asynchronous teams for joint lot-sizing and scheduling problem in flow shops

The integrated production scheduling and lot-sizing problem in a flow shop environment consists of establishing production lot sizes and allocating machines to process them within a planning horizon in a production line with machines arranged in series. The problem considers that demands must be met without backlogging, the capacity of the machines must be respected, and machine setups are sequence-dependent and preserved between periods of the planning horizon. The objective is to determine a production schedule to minimise the setup, production and inventory costs. A mathematical model from the literature is presented, as well as procedures for obtaining feasible solutions. However, some of the procedures have difficulty in obtaining feasible solutions for large-sized problem instances. In addition, we address the problem using different versions of the Asynchronous Team (A-Team) approach. The procedures were compared with literature heuristics based on Mixed Integer Programming. The proposed A-Team procedures outperformed the literature heuristics, especially for large instances. The developed methodologies and the results obtained are presented.

Three time-based scale formulations for the two-stage lot sizing and scheduling in process industries

In this paper, we propose three novel mathematical models for the two-stage lot-sizing and scheduling problems present in many process industries. The problem shares a continuous or quasi-continuous production feature upstream and a discrete manufacturing feature downstream, which must be synchronized. Different time-based scale representations are discussed. The first formulation encompasses a discrete-time representation. The second one is a hybrid continuous-discrete model. The last formulation is based on a continuous-time model representation. Computational tests with state-of-the-art MIP solver show that the discrete-time representation provides better feasible solutions in short running time. On the other hand, the hybrid model achieves better solutions for longer computational times and was able to prove optimality more often. The continuous-type model is the most flexible of the three for incorporating additional operational requirements, at a cost of having the worst computational performance. Journal of the Operational Research Society (2012) 63, 1613-1630. doi:10.1057/jors.2011.159 published online 7 March 2012

Models for capacitated lot-sizing problem with backlogging, setup carryover and crossover

Setup operations are significant in some production environments. It is mandatory that their production plans consider some features, as setup state conservation across periods through setup carryover and crossover. The modelling of setup crossover allows more flexible decisions and is essential for problems with long setup times. This paper proposes two models for the capacitated lot-sizing problem with backlogging and setup carryover and crossover. The first is in line with other models from the literature, whereas the second considers a disaggregated setup variable, which tracks the starting and completion times of the setup operation. This innovative approach permits a more compact formulation. Computational results show that the proposed models have outperformed other state-of-the-art formulation.

Coordinated Lot-sizing and Dynamic Prizing under a Supplier All-units Quantity Discount

We consider an economic order quantity model where the supplier offers an all-units quantity discount and a price sensitive customer demand. We compare a decentralized decision framework where selling price and replenishment policy are determined independently to simultaneous decision making. Constant and dynamic pricing are distinguished. We derive structural properties and develop algorithms that determine the optimal pricing and replenishment policy and show how quantity discounts not only influence the purchasing strategy but also the pricing policy. A sensitivity analysis indicates the impact of the fixed-holding cost ratio, the discount policy, and the customers' price sensitivity on the optimal decisions.

Non-stationary stochastic inventory lot-sizing with emission and service level constraints in a carbon cap-and-trade system

Firms worldwide are taking major initiatives to reduce the carbon footprint of their supply chains in response to the growing governmental and consumer pressures. In real life, these supply chains face stochastic and non-stationary demand but most of the studies on inventory lot-sizing problem with emission concerns consider deterministic demand. In this paper, we study the inventory lot-sizing problem under non-stationary stochastic demand condition with emission and cycle service level constraints considering carbon cap-and-trade regulatory mechanism. Using a mixed integer linear programming model, this paper aims to investigate the effects of emission parameters, product- and system-related features on the supply chain performance through extensive computational experiments to cover general type business settings and not a specific scenario. Results show that cycle service level and demand coefficient of variation have significant impacts on total cost and emission irrespective of level of demand variability while the impact of product's demand pattern is significant only at lower level of demand variability. Finally, results also show that increasing value of carbon price reduces total cost, total emission and total inventory and the scope of emission reduction by increasing carbon price is greater at higher levels of cycle service level and demand coefficient of variation. The analysis of results helps supply chain managers to take right decision in different demand and service level situations.

The order selection and lot sizing problem in the make-to-order environment

This research is motivated by the need for considering lot sizing while accepting customer orders in a make-to-order (MTO) environment, in which each customer order must be delivered by its due date. Job shop is the typical operation model used in an MTO operation, where the production planner must make three concurrent decisions; they are order selection, lot size, and job schedule. These decisions are usually treated separately in the literature and are mostly led to heuristic solutions. The first phase of the study is focused on a formal definition of the problem. Mathematical programming techniques are applied to modeling this problem in terms of its objective, decision variables, and constraints. A commercial solver, CPLEX is applied to solve the resulting mixed-integer linear programming model with small instances to validate the mathematical formulation. The computational result shows it is not practical for solving problems of industrial size, using a commercial solver. The second phase of this study is focused on development of an effective solution approach to this problem of large scale. The proposed solution approach is an iterative process involving three sequential decision steps of order selection, lot sizing, and lot scheduling. A range of simple sequencing rules are identified for each of the three subproblems. Using computer simulation as the tool, an experiment is designed to evaluate their performance against a set of system parameters. For order selection, the proposed weighted most profit rule performs the best. The shifting bottleneck and the earliest operation finish time both are the best scheduling rules. For lot sizing, the proposed minimum cost increase heuristic, based on the Dixon-Silver method performs the best, when the demand-to-capacity ratio at the bottleneck machine is high. The proposed minimum cost heuristic, based on the Wagner-Whitin algorithm is the best lot-sizing heuristic for shops of a low demand-to-capacity ratio. The proposed heuristic is applied to an industrial case to further evaluate its performance. The result shows it can improve an average of total profit by 16.62%. This research contributes to the production planning research community with a complete mathematical definition of the problem and an effective solution approach to solving the problem of industry scale.

Relax and fix heuristics to solve one-stage one-machine lot-scheduling models for small-scale soft drink plants

Fundação de Amparo à Pesquisa do Estado de São Paulo (FAPESP)