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Dynamic lot sizing in biopharmaceutical manufacturing

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  • Sahling, Florian
  • Hahn, Gerd J.

Abstract

Biopharmaceutical products involve high margins but are subject to quality controls during production and to limited product shelf life. Consequently, production planning becomes a challenging task: both inventory and obsolescence costs must be reduced while finding lot sizes that ensure cost-efficient operations. In this paper, we consider operational lot sizing for a multi-level biopharmaceutical manufacturing process that is organized as a flexible flow shop, i.e., parallel and non-identical resources at several production levels. The manufacturing process involves both batch and serial production stages. The problem at hand has two industry-specific requirements: extensive quality checks per lot produced and a restricted shelf life for products. We formulate a mathematical model of this multi-level capacitated lot sizing problem and apply a Fix-and-Optimize heuristic to find high-quality solutions in a reasonable time frame. Modeling challenges and numerical results are provided using a real-life case example from the biopharmaceutical industry.

Suggested Citation

  • Sahling, Florian & Hahn, Gerd J., 2019. "Dynamic lot sizing in biopharmaceutical manufacturing," International Journal of Production Economics, Elsevier, vol. 207(C), pages 96-106.
    • Handle: RePEc:eee:proeco:v:207:y:2019:i:c:p:96-106
    DOI: 10.1016/j.ijpe.2018.11.006
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