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Optimizing multi-stage production with constant lot size and varying number of unequal sized batches

Author

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  • Bogaschewsky, Ronald W.
  • Buscher, Udo D.
  • Lindner, Gerd

Abstract

This paper describes a model for a multi-stage production/inventory system in which a uniform lot size is produced through all stages with a single setup and without interruption at each stage. Partial lots, called batches, may be transported to the next stage upon completion. The number of the unequal sized batches may differ across stages. Considering setup costs, inventory holding costs, and transportation costs, an optimization method is developed to determine the economic lot size and the optimal batch sizes for each stage. The method is illustrated by a computational example and further numerical simulations.

Suggested Citation

  • Bogaschewsky, Ronald W. & Buscher, Udo D. & Lindner, Gerd, 2001. "Optimizing multi-stage production with constant lot size and varying number of unequal sized batches," Omega, Elsevier, vol. 29(2), pages 183-191, April.
    • Handle: RePEc:eee:jomega:v:29:y:2001:i:2:p:183-191
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    References listed on IDEAS

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    1. Leroy B. Schwarz & Linus Schrage, 1975. "Optimal and System Myopic Policies for Multi-Echelon Production/Inventory Assembly Systems," Management Science, INFORMS, vol. 21(11), pages 1285-1294, July.
    2. S. K. Goyal, 1976. "Note--Note on "Manufacturing Cycle Time Determination for a Multi-Stage Economic Production Quantity Model"," Management Science, INFORMS, vol. 23(3), pages 332-333, November.
    3. Drezner, Z. & Szendrovits, A. Z. & Wesolowsky, G. O., 1984. "Multi-stage production with variable lot sizes and transportation of partial lots," European Journal of Operational Research, Elsevier, vol. 17(2), pages 227-237, August.
    4. Goyal, S. K. & Szendrovits, A. Z., 1986. "A constant lot size model with equal and unequal sized batch shipments between production stages," Engineering Costs and Production Economics, Elsevier, vol. 10(3), pages 203-210, March.
    5. Szendrovits, Andrew Z & Drezner, ZVI, 1980. "Optimizing multi-stage production with constant lot size and varying numbers of batches," Omega, Elsevier, vol. 8(6), pages 623-629.
    6. Andrew Z. Szendrovits, 1975. "Manufacturing Cycle Time Determination for a Multi-Stage Economic Production Quantity Model," Management Science, INFORMS, vol. 22(3), pages 298-308, November.
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    Citations

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    Cited by:

    1. Riezebos, Jan, 2002. "Time bucket size and lot-splitting approach," Research Report 02A42, University of Groningen, Research Institute SOM (Systems, Organisations and Management).
    2. Kenyon, George & Canel, Cem & Neureuther, Brian D., 2005. "The impact of lot-sizing on net profits and cycle times in the n-job, m-machine job shop with both discrete and batch processing," International Journal of Production Economics, Elsevier, vol. 97(3), pages 263-278, September.
    3. Sarin, Subhash C. & Kalir, Adar A. & Chen, Ming, 2008. "A single-lot, unified cost-based flow shop lot-streaming problem," International Journal of Production Economics, Elsevier, vol. 113(1), pages 413-424, May.
    4. Wen-Tsung Ho & Jason Chao-Hsien Pan & Yu-Cheng Hsiao, 2012. "Optimizing Multi-stage Production for an Assembly-Type Supply Chain with Unequal Sized Batch Shipments," Journal of Optimization Theory and Applications, Springer, vol. 153(2), pages 513-531, May.
    5. D Biskup & M Feldmann, 2006. "Lot streaming with variable sublots: an integer programming formulation," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 57(3), pages 296-303, March.
    6. Hsiao, Yu-Cheng & Lin, Yi & Huang, Yun-Kuei, 2010. "Optimal multi-stage logistic and inventory policies with production bottleneck in a serial supply chain," International Journal of Production Economics, Elsevier, vol. 124(2), pages 408-413, April.
    7. Hoai Le Thi & Duc Tran, 2014. "Optimizing a multi-stage production/inventory system by DC programming based approaches," Computational Optimization and Applications, Springer, vol. 57(2), pages 441-468, March.
    8. Wang, X. & Li, D. & O'brien, C. & Li, Y., 2010. "A production planning model to reduce risk and improve operations management," International Journal of Production Economics, Elsevier, vol. 124(2), pages 463-474, April.
    9. repec:dgr:rugsom:02a42 is not listed on IDEAS
    10. Beck, Fabian G. & Glock, Christoph H. & Kim, Taebok, 2017. "Coordination of a production network with a single buyer and multiple vendors with geometrically increasing batch shipments," International Journal of Production Economics, Elsevier, vol. 193(C), pages 633-646.
    11. Kim, Taebok & Glock, Christoph H., 2018. "Production planning for a two-stage production system with multiple parallel machines and variable production rates," International Journal of Production Economics, Elsevier, vol. 196(C), pages 284-292.

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