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Improved Heuristics for Multi-Stage Requirements Planning Systems

Author

Listed:
  • Joseph D. Blackburn

    (Vanderbilt University)

  • Robert A. Millen

    (Northeastern University)

Abstract

Most of the recent studies of heuristic lot-sizing techniques for multi-stage material requirements planning systems have investigated the problem in the context of a single stage. In this paper, the multi-stage problem is first modeled analytically to indicate the potential errors inherent in the commonly proposed single-pass, stage-by-stage approaches (e.g., Wagner-Whitin). Then, based on this analysis, several simple cost modifications are suggested to improve the global optimality of these procedures. The effectiveness of these alternative modifications is tested through a series of simulation experiments. It is concluded that some of these modifications consistently improve the performance of the stage-by-stage approaches.

Suggested Citation

  • Joseph D. Blackburn & Robert A. Millen, 1982. "Improved Heuristics for Multi-Stage Requirements Planning Systems," Management Science, INFORMS, vol. 28(1), pages 44-56, January.
    • Handle: RePEc:inm:ormnsc:v:28:y:1982:i:1:p:44-56
    DOI: 10.1287/mnsc.28.1.44
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    Citations

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    Cited by:

    1. Dellaert, N. & Jeunet, J. & Jonard, N., 2000. "A genetic algorithm to solve the general multi-level lot-sizing problem with time-varying costs," International Journal of Production Economics, Elsevier, vol. 68(3), pages 241-257, December.
    2. Chu, Chi-Leung & Leon, V. Jorge, 2009. "Scalable methodology for supply chain inventory coordination with private information," European Journal of Operational Research, Elsevier, vol. 195(1), pages 262-279, May.
    3. Meller, Russell D., 1995. "The impact of multiple stocking points on system profitability," International Journal of Production Economics, Elsevier, vol. 38(2-3), pages 209-214, March.
    4. N.C. Simpson & S. Selcuk Erenguc, 2005. "Modeling multiple stage manufacturing systems with generalized costs and capacity issues," Naval Research Logistics (NRL), John Wiley & Sons, vol. 52(6), pages 560-570, September.
    5. Wen-Tsung Ho & Shu-Fang Lai & Yun-Kuei Huang, 2014. "An Optimal Mixed Batch Shipment Policy for Multiple Items in a Single-Supplier Multiple-Retailer Integrated System," Journal of Optimization Theory and Applications, Springer, vol. 160(2), pages 636-658, February.
    6. Erenguc, S. Selcuk & Simpson, N. C. & Vakharia, Asoo J., 1999. "Integrated production/distribution planning in supply chains: An invited review," European Journal of Operational Research, Elsevier, vol. 115(2), pages 219-236, June.
    7. Dellaert, Nico & Jeunet, Jully, 2003. "Controlling multi-level production in a rolling-schedule environment," International Journal of Production Economics, Elsevier, vol. 85(1), pages 113-121, July.
    8. Gencer, Cevriye & Erol, Serpil & Erol, Yalcin, 1999. "A decision network algorithm for multi-stage dynamic lot sizing problems," International Journal of Production Economics, Elsevier, vol. 62(3), pages 281-285, September.
    9. Wee, H. M. & Yang, P. C., 2004. "The optimal and heuristic solutions of a distribution network," European Journal of Operational Research, Elsevier, vol. 158(3), pages 626-632, November.
    10. Zhao, Xiande & Lam, Kokin, 1997. "Lot-sizing rules and freezing the master production schedule in material requirements planning systems," International Journal of Production Economics, Elsevier, vol. 53(3), pages 281-305, December.
    11. Simpson, N. C., 1999. "Multiple level production planning in rolling horizon assembly environments," European Journal of Operational Research, Elsevier, vol. 114(1), pages 15-28, April.
    12. Elena Katok & Holly S. Lewis & Terry P. Harrison, 1998. "Lot Sizing in General Assembly Systems with Setup Costs, Setup Times, and Multiple Constrained Resources," Management Science, INFORMS, vol. 44(6), pages 859-877, June.
    13. Xiao, Yiyong & Kaku, Ikou & Zhao, Qiuhong & Zhang, Renqian, 2011. "A reduced variable neighborhood search algorithm for uncapacitated multilevel lot-sizing problems," European Journal of Operational Research, Elsevier, vol. 214(2), pages 223-231, October.
    14. Sahin, Funda & Powell Robinson, E. & Gao, Li-Lian, 2008. "Master production scheduling policy and rolling schedules in a two-stage make-to-order supply chain," International Journal of Production Economics, Elsevier, vol. 115(2), pages 528-541, October.
    15. Dellaert, N. P. & Jeunet, J., 2003. "Randomized multi-level lot-sizing heuristics for general product structures," European Journal of Operational Research, Elsevier, vol. 148(1), pages 211-228, July.
    16. Kimms, Alf & Drexl, Andreas, 1996. "Multi-level lot sizing: A literature survey," Manuskripte aus den Instituten für Betriebswirtschaftslehre der Universität Kiel 405, Christian-Albrechts-Universität zu Kiel, Institut für Betriebswirtschaftslehre.
    17. Xiao, Yiyong & Zhang, Renqian & Zhao, Qiuhong & Kaku, Ikou & Xu, Yuchun, 2014. "A variable neighborhood search with an effective local search for uncapacitated multilevel lot-sizing problems," European Journal of Operational Research, Elsevier, vol. 235(1), pages 102-114.
    18. Pundoor, Guruprasad & Chen, Zhi-Long, 2009. "Joint cyclic production and delivery scheduling in a two-stage supply chain," International Journal of Production Economics, Elsevier, vol. 119(1), pages 55-74, May.
    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.

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