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Optimal Cycle Times in Multistage Serial Systems with Set-Up and Inventory Costs

Author

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  • Iftekhar A. Karimi

    (Department of Chemical Engineering, Northwestern University, Evanston, Illinois 60208-3120)

Abstract

Scheduling of multistage serial production systems under constant demand and infinite horizon is considered. The production stages operate with periodic shut-downs and startups. An integer nonlinear programming formulation is presented for determining a stationary, cyclic schedule with no stock-outs in any inventory and minimum sum of set-up and inventory costs. It allows a lot-sizing policy involving arbitrary, noninteger splitting/merging of lots. Three, almost optimal, heuristic algorithms and an exact branch and bound algorithm are developed using analytical results. Their evaluation using simulated problems shows the branch and bound algorithm to be the best, as it is fast even for systems with as many as 11 stages.

Suggested Citation

  • Iftekhar A. Karimi, 1992. "Optimal Cycle Times in Multistage Serial Systems with Set-Up and Inventory Costs," Management Science, INFORMS, vol. 38(10), pages 1467-1481, October.
    • Handle: RePEc:inm:ormnsc:v:38:y:1992:i:10:p:1467-1481
    DOI: 10.1287/mnsc.38.10.1467
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    Citations

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    Cited by:

    1. Hoque, M. A. & Kingsman, B. G., 1995. "An optimal solution algorithm for the constant lot-size model with equal and unequal sized batch shipments for the single product multi-stage production system," International Journal of Production Economics, Elsevier, vol. 42(2), pages 161-174, December.
    2. Hadjinicola, George C. & Soteriou, Andreas C., 2003. "Reducing the cost of defects in multistage production systems: A budget allocation perspective," European Journal of Operational Research, Elsevier, vol. 145(3), pages 621-634, March.
    3. G C Hadjinicola, 2010. "Manufacturing costs in serial production systems with rework," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 61(2), pages 342-351, February.
    4. Kim, DaeSoo, 1999. "Optimal two-stage lot sizing and inventory batching policies," International Journal of Production Economics, Elsevier, vol. 58(3), pages 221-234, January.
    5. Huang, Rong-Hwa, 2010. "Multi-objective job-shop scheduling with lot-splitting production," International Journal of Production Economics, Elsevier, vol. 124(1), pages 206-213, March.

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