IDEAS home Printed from https://ideas.repec.org/a/eee/ejores/v273y2019i1p146-159.html
   My bibliography  Save this article

A capacitated lot sizing problem with stochastic setup times and overtime

Author

Listed:
  • Taş, Duygu
  • Gendreau, Michel
  • Jabali, Ola
  • Jans, Raf

Abstract

In this paper, we study a Capacitated Lot Sizing Problem with Stochastic Setup Times and Overtime (CLSP-SSTO). We describe a mathematical model that considers both regular costs (including production, setup and inventory holding costs) and expected overtime costs (related to the excess usage of capacity). The CLSP-SSTO is formulated as a two-stage stochastic programming problem. A procedure is proposed to exactly compute the expected overtime for a given setup and production plan when the setup times follow a Gamma distribution. A sample average approximation procedure is applied to obtain upper bounds and a statistical lower bound. This is then used to benchmark the performance of two additional heuristics. A first heuristic is based on changing the capacity in the deterministic counterpart, while the second heuristic artificially modifies the setup time. We conduct our computational experiments on well-known problem instances and provide comprehensive analyses to evaluate the performance of each heuristic.

Suggested Citation

  • Taş, Duygu & Gendreau, Michel & Jabali, Ola & Jans, Raf, 2019. "A capacitated lot sizing problem with stochastic setup times and overtime," European Journal of Operational Research, Elsevier, vol. 273(1), pages 146-159.
    • Handle: RePEc:eee:ejores:v:273:y:2019:i:1:p:146-159
    DOI: 10.1016/j.ejor.2018.07.032
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0377221718306374
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.ejor.2018.07.032?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Ozdamar, Linet & Birbil, Sevket Ilker, 1998. "Hybrid heuristics for the capacitated lot sizing and loading problem with setup times and overtime decisions," European Journal of Operational Research, Elsevier, vol. 110(3), pages 525-547, November.
    2. Beraldi, Patrizia & Ghiani, Gianpaolo & Guerriero, Emanuela & Grieco, Antonio, 2006. "Scenario-based planning for lot-sizing and scheduling with uncertain processing times," International Journal of Production Economics, Elsevier, vol. 101(1), pages 140-149, May.
    3. McIntosh, R. I. & Culley, S. J. & Mileham, A. R. & Owen, G. W., 2001. "Changeover improvement: A maintenance perspective," International Journal of Production Economics, Elsevier, vol. 73(2), pages 153-163, September.
    4. William W. Trigeiro & L. Joseph Thomas & John O. McClain, 1989. "Capacitated Lot Sizing with Setup Times," Management Science, INFORMS, vol. 35(3), pages 353-366, March.
    5. Nourelfath, Mustapha, 2011. "Service level robustness in stochastic production planning under random machine breakdowns," European Journal of Operational Research, Elsevier, vol. 212(1), pages 81-88, July.
    6. Moustapha Diaby & Harish C. Bahl & Mark H. Karwan & Stanley Zionts, 1992. "A Lagrangean Relaxation Approach for Very-Large-Scale Capacitated Lot-Sizing," Management Science, INFORMS, vol. 38(9), pages 1329-1340, September.
    7. Horst Tempelmeier, 2013. "Stochastic Lot Sizing Problems," International Series in Operations Research & Management Science, in: J. MacGregor Smith & Barış Tan (ed.), Handbook of Stochastic Models and Analysis of Manufacturing System Operations, edition 127, chapter 0, pages 313-344, Springer.
    8. repec:dau:papers:123456789/2775 is not listed on IDEAS
    9. James H. Bookbinder & Jin-Yan Tan, 1988. "Strategies for the Probabilistic Lot-Sizing Problem with Service-Level Constraints," Management Science, INFORMS, vol. 34(9), pages 1096-1108, September.
    10. Brahimi, Nadjib & Absi, Nabil & Dauzère-Pérès, Stéphane & Nordli, Atle, 2017. "Single-item dynamic lot-sizing problems: An updated survey," European Journal of Operational Research, Elsevier, vol. 263(3), pages 838-863.
    11. Taş, D. & Gendreau, M. & Dellaert, N. & van Woensel, T. & de Kok, A.G., 2014. "Vehicle routing with soft time windows and stochastic travel times: A column generation and branch-and-price solution approach," European Journal of Operational Research, Elsevier, vol. 236(3), pages 789-799.
    12. N. P. Dellaert & A. G. De Kok & Wang Wei, 2000. "Push and pull strategies in multi‐stage assembly systems," Statistica Neerlandica, Netherlands Society for Statistics and Operations Research, vol. 54(2), pages 175-189, July.
    13. Jeunet, Jully & Jonard, Nicolas, 2000. "Measuring the performance of lot-sizing techniques in uncertain environments," International Journal of Production Economics, Elsevier, vol. 64(1-3), pages 197-208, March.
    14. Gabriel R. Bitran & Horacio H. Yanasse, 1982. "Computational Complexity of the Capacitated Lot Size Problem," Management Science, INFORMS, vol. 28(10), pages 1174-1186, October.
    15. Dillenberger, Christof & Escudero, Laureano F. & Wollensak, Artur & Zhang, Wu, 1994. "On practical resource allocation for production planning and scheduling with period overlapping setups," European Journal of Operational Research, Elsevier, vol. 75(2), pages 275-286, June.
    16. Koca, Esra & Yaman, Hande & Selim Aktürk, M., 2015. "Stochastic lot sizing problem with controllable processing times," Omega, Elsevier, vol. 53(C), pages 1-10.
    17. Süral, Haldun & Denizel, Meltem & Van Wassenhove, Luk N., 2009. "Lagrangean relaxation based heuristics for lot sizing with setup times," European Journal of Operational Research, Elsevier, vol. 194(1), pages 51-63, April.
    18. M Denizel & H Süral, 2006. "On alternative mixed integer programming formulations and LP-based heuristics for lot-sizing with setup times," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 57(4), pages 389-399, April.
    19. Jans, Raf & Degraeve, Zeger, 2007. "Meta-heuristics for dynamic lot sizing: A review and comparison of solution approaches," European Journal of Operational Research, Elsevier, vol. 177(3), pages 1855-1875, March.
    20. K S Hindi & K Fleszar & C Charalambous, 2003. "An effective heuristic for the CLSP with set-up times," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 54(5), pages 490-498, May.
    21. Kuhn, Heinrich, 1997. "A dynamic lot sizing model with exponential machine breakdowns," European Journal of Operational Research, Elsevier, vol. 100(3), pages 514-536, August.
    22. Diaby, M. & Bahl, H. C. & Karwan, M. H. & Zionts, S., 1992. "Capacitated lot-sizing and scheduling by Lagrangean relaxation," European Journal of Operational Research, Elsevier, vol. 59(3), pages 444-458, June.
    23. Tempelmeier, Horst, 2011. "A column generation heuristic for dynamic capacitated lot sizing with random demand under a fill rate constraint," Omega, Elsevier, vol. 39(6), pages 627-633, December.
    24. Karimi, B. & Fatemi Ghomi, S. M. T. & Wilson, J. M., 2003. "The capacitated lot sizing problem: a review of models and algorithms," Omega, Elsevier, vol. 31(5), pages 365-378, October.
    25. Rossi, Roberto & Kilic, Onur A. & Tarim, S. Armagan, 2015. "Piecewise linear approximations for the static–dynamic uncertainty strategy in stochastic lot-sizing," Omega, Elsevier, vol. 50(C), pages 126-140.
    26. Dellaert, N. P. & Melo, M. T., 1998. "Make-to-order policies for a stochastic lot-sizing problem using overtime," International Journal of Production Economics, Elsevier, vol. 56(1), pages 79-97, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Gao, Kaiye & Peng, Rui & Qu, Li & Wu, Shaomin, 2020. "Jointly optimizing lot sizing and maintenance policy for a production system with two failure modes," Reliability Engineering and System Safety, Elsevier, vol. 202(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Dziuba, Daryna & Almeder, Christian, 2023. "New construction heuristic for capacitated lot sizing problems," European Journal of Operational Research, Elsevier, vol. 311(3), pages 906-920.
    2. Brahimi, Nadjib & Absi, Nabil & Dauzère-Pérès, Stéphane & Nordli, Atle, 2017. "Single-item dynamic lot-sizing problems: An updated survey," European Journal of Operational Research, Elsevier, vol. 263(3), pages 838-863.
    3. Chen, Haoxun, 2015. "Fix-and-optimize and variable neighborhood search approaches for multi-level capacitated lot sizing problems," Omega, Elsevier, vol. 56(C), pages 25-36.
    4. Toledo, Franklina Maria Bragion & Armentano, Vinicius Amaral, 2006. "A Lagrangian-based heuristic for the capacitated lot-sizing problem in parallel machines," European Journal of Operational Research, Elsevier, vol. 175(2), pages 1070-1083, December.
    5. Hadi Farhangi, 2021. "Multi-Echelon Supply Chains with Lead Times and Uncertain Demands," SN Operations Research Forum, Springer, vol. 2(3), pages 1-25, September.
    6. Jans, Raf & Degraeve, Zeger, 2007. "Meta-heuristics for dynamic lot sizing: A review and comparison of solution approaches," European Journal of Operational Research, Elsevier, vol. 177(3), pages 1855-1875, March.
    7. Sereshti, Narges & Adulyasak, Yossiri & Jans, Raf, 2021. "The value of aggregate service levels in stochastic lot sizing problems," Omega, Elsevier, vol. 102(C).
    8. Diego Fiorotto & Silvio Araujo, 2014. "Reformulation and a Lagrangian heuristic for lot sizing problem on parallel machines," Annals of Operations Research, Springer, vol. 217(1), pages 213-231, June.
    9. Sereshti, Narges & Adulyasak, Yossiri & Jans, Raf, 2024. "Managing flexibility in stochastic multi-level lot sizing problem with service level constraints," Omega, Elsevier, vol. 122(C).
    10. Melega, Gislaine Mara & de Araujo, Silvio Alexandre & Jans, Raf, 2018. "Classification and literature review of integrated lot-sizing and cutting stock problems," European Journal of Operational Research, Elsevier, vol. 271(1), pages 1-19.
    11. Silvio Alexandre de Araujo & Bert De Reyck & Zeger Degraeve & Ioannis Fragkos & Raf Jans, 2015. "Period Decompositions for the Capacitated Lot Sizing Problem with Setup Times," INFORMS Journal on Computing, INFORMS, vol. 27(3), pages 431-448, August.
    12. Nascimento, Mariá C.V. & Resende, Mauricio G.C. & Toledo, Franklina M.B., 2010. "GRASP heuristic with path-relinking for the multi-plant capacitated lot sizing problem," European Journal of Operational Research, Elsevier, vol. 200(3), pages 747-754, February.
    13. Haugen, Kjetil K. & Olstad, Asmund & Pettersen, Bard I., 2007. "The profit maximizing capacitated lot-size (PCLSP) problem," European Journal of Operational Research, Elsevier, vol. 176(1), pages 165-176, January.
    14. Andrea Raiconi & Julia Pahl & Monica Gentili & Stefan Voß & Raffaele Cerulli, 2017. "Tactical Production and Lot Size Planning with Lifetime Constraints: A Comparison of Model Formulations," Asia-Pacific Journal of Operational Research (APJOR), World Scientific Publishing Co. Pte. Ltd., vol. 34(05), pages 1-24, October.
    15. Ozdamar, Linet & Barbarosoglu, Gulay, 2000. "An integrated Lagrangean relaxation-simulated annealing approach to the multi-level multi-item capacitated lot sizing problem," International Journal of Production Economics, Elsevier, vol. 68(3), pages 319-331, December.
    16. Petering, Matthew E.H. & Chen, Xi & Hsieh, Wen-Huan, 2019. "Inventory control with flexible demand: Cyclic case with multiple batch supply and demand processes," International Journal of Production Economics, Elsevier, vol. 212(C), pages 60-77.
    17. Jans, R.F. & Degraeve, Z., 2005. "Modeling Industrial Lot Sizing Problems: A Review," ERIM Report Series Research in Management ERS-2005-049-LIS, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    18. Folarin B. Oyebolu & Jeroen Lidth de Jeude & Cyrus Siganporia & Suzanne S. Farid & Richard Allmendinger & Juergen Branke, 2017. "A new lot sizing and scheduling heuristic for multi-site biopharmaceutical production," Journal of Heuristics, Springer, vol. 23(4), pages 231-256, August.
    19. Gruson, Matthieu & Cordeau, Jean-François & Jans, Raf, 2018. "The impact of service level constraints in deterministic lot sizing with backlogging," Omega, Elsevier, vol. 79(C), pages 91-103.
    20. K S Hindi & K Fleszar & C Charalambous, 2003. "An effective heuristic for the CLSP with set-up times," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 54(5), pages 490-498, May.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:ejores:v:273:y:2019:i:1:p:146-159. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/eor .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.