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A risk-averse two-stage stochastic programming model for a joint multi-item capacitated line balancing and lot-sizing problem

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  • Li, Yuchen
  • Saldanha-da-Gama, Francisco
  • Liu, Ming
  • Yang, Zaoli

Abstract

In this paper, a comprehensive production planning problem under uncertain demand is investigated. The problem intertwines two NP-hard optimization problems: an assembly line balancing problem and a capacitated lot-sizing problem. The problem is modelled as a two-stage stochastic program assuming a risk-averse decision maker. Efficient solution procedures are proposed for tackling the problem. A case study related to mask production is presented. Several insights are provided stemming from the COVID-19 pandemic. Finally, the results of a series of computational tests are reported.

Suggested Citation

  • Li, Yuchen & Saldanha-da-Gama, Francisco & Liu, Ming & Yang, Zaoli, 2023. "A risk-averse two-stage stochastic programming model for a joint multi-item capacitated line balancing and lot-sizing problem," European Journal of Operational Research, Elsevier, vol. 304(1), pages 353-365.
    • Handle: RePEc:eee:ejores:v:304:y:2023:i:1:p:353-365
    DOI: 10.1016/j.ejor.2021.09.043
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    1. Li, Yuchen & Liu, Ming & Saldanha-da-Gama, Francisco & Yang, Zaoli, 2024. "Risk-averse two-stage stochastic programming for assembly line reconfiguration with dynamic lot sizes," Omega, Elsevier, vol. 127(C).
    2. Zhao, Shuaiqi & Yang, Hualong & Zheng, Jianfeng & Li, Dechang, 2024. "A two-step approach for deploying heterogeneous vessels and designing reliable schedule in liner shipping services," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 182(C).

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