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Lot Sizing in General Assembly Systems with Setup Costs, Setup Times, and Multiple Constrained Resources

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  • Elena Katok

    (Division of Economics and Business, Colorado School of Mines, Golden, Colorado 80401)

  • Holly S. Lewis

    (Department of Management Science and Information Systems, The Pennsylvania State University, University Park, Pennsylvania 16802)

  • Terry P. Harrison

    (Department of Management Science and Information Systems, The Pennsylvania State University, University Park, Pennsylvania 16802)

Abstract

We introduce a heuristic method for finding good, feasible solutions for multiproduct lot sizing problems with general assembly structures, multiple constrained resources, and nonzero setup costs and setup times. We evaluate the performance of this heuristic by comparing its solutions to optimal solutions of small randomly generated problems and to time-truncated Optimization Subroutine Library (OSL) solutions of medium-sized randomly generated problems. In the first case, the heuristic locates solutions averaging 4 percent worse than optimal in less than 1 percent of time required by OSL. The heuristic solutions to medium-sized problems are approximately 26 percent better than solutions OSL finds after 10,000 CPU seconds, and the heuristic finds these solutions in approximately 10 percent of OSL time.

Suggested Citation

  • 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.
    • Handle: RePEc:inm:ormnsc:v:44:y:1998:i:6:p:859-877
    DOI: 10.1287/mnsc.44.6.859
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    References listed on IDEAS

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    Cited by:

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    3. Hartmut Stadtler, 2003. "Multilevel Lot Sizing with Setup Times and Multiple Constrained Resources: Internally Rolling Schedules with Lot-Sizing Windows," Operations Research, INFORMS, vol. 51(3), pages 487-502, June.
    4. Sarker, Bhaba R. & Diponegoro, Ahmad, 2009. "Optimal production plans and shipment schedules in a supply-chain system with multiple suppliers and multiple buyers," European Journal of Operational Research, Elsevier, vol. 194(3), pages 753-773, May.
    5. Berretta, Regina & Rodrigues, Luiz Fernando, 2004. "A memetic algorithm for a multistage capacitated lot-sizing problem," International Journal of Production Economics, Elsevier, vol. 87(1), pages 67-81, January.
    6. Petering, Matthew E.H. & Chen, Xi & Hsieh, Wen-Huan, 2019. "Inventory control with flexible demand: Cyclic case with multiple batch supply and demand processes," International Journal of Production Economics, Elsevier, vol. 212(C), pages 60-77.
    7. Francesco Gaglioppa & Lisa A. Miller & Saif Benjaafar, 2008. "Multitask and Multistage Production Planning and Scheduling for Process Industries," Operations Research, INFORMS, vol. 56(4), pages 1010-1025, August.
    8. Elena Katok & William Tarantino & Ralph Tiedeman, 2001. "Improving Performance and Flexibility at Jeppesen: The World's Leading Aviation-Information Company," Interfaces, INFORMS, vol. 31(1), pages 7-29, February.
    9. Lawrence C. Leung & Yer Van Hui & Yong Wang & Gang Chen, 2009. "A 0--1 LP Model for the Integration and Consolidation of Air Cargo Shipments," Operations Research, INFORMS, vol. 57(2), pages 402-412, April.
    10. BELVAUX, Gaetan & WOLSEY, Laurence A., 1998. "Lot-sizing problems: modelling issues and a specialized branch-and-cut system BC-PROD," LIDAM Discussion Papers CORE 1998049, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    11. Kerem Akartunalı & Andrew Miller, 2012. "A computational analysis of lower bounds for big bucket production planning problems," Computational Optimization and Applications, Springer, vol. 53(3), pages 729-753, December.
    12. Helber, Stefan & Sahling, Florian, 2010. "A fix-and-optimize approach for the multi-level capacitated lot sizing problem," International Journal of Production Economics, Elsevier, vol. 123(2), pages 247-256, February.
    13. Yves Pochet & Mathieu Van Vyve, 2004. "A General Heuristic for Production Planning Problems," INFORMS Journal on Computing, INFORMS, vol. 16(3), pages 316-327, August.
    14. Süral, Haldun & Denizel, Meltem & Van Wassenhove, Luk N., 2009. "Lagrangean relaxation based heuristics for lot sizing with setup times," European Journal of Operational Research, Elsevier, vol. 194(1), pages 51-63, April.
    15. AkartunalI, Kerem & Miller, Andrew J., 2009. "A heuristic approach for big bucket multi-level production planning problems," European Journal of Operational Research, Elsevier, vol. 193(2), pages 396-411, March.
    16. 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.
    17. Brahimi, Nadjib & Dauzere-Peres, Stephane & Najid, Najib M. & Nordli, Atle, 2006. "Single item lot sizing problems," European Journal of Operational Research, Elsevier, vol. 168(1), pages 1-16, January.

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