IDEAS home Printed from https://ideas.repec.org/a/inm/ormnsc/v45y1999i1p86-102.html
   My bibliography  Save this article

Finding Optimal Material Release Times Using Simulation-Based Optimization

Author

Listed:
  • Tito Homem-de-Mello

    (School of Industrial and Systems Engineering, Georgia Institute of Technology, Atlanta, Georgia 30332-0205)

  • Alexander Shapiro

    (School of Industrial and Systems Engineering, Georgia Institute of Technology, Atlanta, Georgia 30332-0205)

  • Mark L. Spearman

    (School of Industrial and Systems Engineering, Georgia Institute of Technology, Atlanta, Georgia 30332-0205)

Abstract

We present a method for setting release times for jobs with due dates in a stochastic production flow line for which the sequence of jobs has been determined. Unlike other approaches to this problem, ours considers a transient situation. Thus, the flow line will typically contain work in process (WIP), that is, jobs that have been previously released to the system. Our goal is to develop a job release schedule that not only minimizes tardiness but also maximizes flexibility. The philosophy can be characterized as one that seeks to "release as late as possible, but no later!" Our methodology is based on Monte Carlo simulation and consequent optimization by a method that became known as "stochastic counterpart" or "sample path" simulation-based optimization techniques. We use this method to minimize an expected value objective function that contains terms for tardiness and flow time "costs." We include a discussion of how the cost parameters of this objective function can be obtained by considering a "characteristic curve" for the system. We also discuss means for obtaining sensitivity analysis with respect to due dates and service times distributions parameters. We conclude with a numerical example.

Suggested Citation

  • Tito Homem-de-Mello & Alexander Shapiro & Mark L. Spearman, 1999. "Finding Optimal Material Release Times Using Simulation-Based Optimization," Management Science, INFORMS, vol. 45(1), pages 86-102, January.
    • Handle: RePEc:inm:ormnsc:v:45:y:1999:i:1:p:86-102
    DOI: 10.1287/mnsc.45.1.86
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1287/mnsc.45.1.86
    Download Restriction: no
    File URL: https://libkey.io/10.1287/mnsc.45.1.86?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Uday S. Karmarkar, 1987. "Lot Sizes, Lead Times and In-Process Inventories," Management Science, INFORMS, vol. 33(3), pages 409-418, March.
    2. Mark L. Spearman & Michael A. Zazanis, 1992. "Push and Pull Production Systems: Issues and Comparisons," Operations Research, INFORMS, vol. 40(3), pages 521-532, June.
    3. S. Saboo & L. Wang & W. E. Wilhelm, 1989. "Recursion Models for Describing and Managing the Transient Flow of Materials in Generalized Flowlines," Management Science, INFORMS, vol. 35(6), pages 722-742, June.
    4. Uday S. Karmarkar & Sham Kekre & Sunder Kekre & Susan Freeman, 1985. "Lot-Sizing and Lead-time Performance in a Manufacturing Cell," Interfaces, INFORMS, vol. 15(2), pages 1-9, April.
    5. Stephen C. Graves, 1986. "A Tactical Planning Model for a Job Shop," Operations Research, INFORMS, vol. 34(4), pages 522-533, August.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Marlin W. Ulmer & Barrett W. Thomas, 2019. "Enough Waiting for the Cable Guy—Estimating Arrival Times for Service Vehicle Routing," Transportation Science, INFORMS, vol. 53(3), pages 897-916, May.
    2. Enlu Zhou & Shalabh Bhatnagar, 2018. "Gradient-Based Adaptive Stochastic Search for Simulation Optimization Over Continuous Space," INFORMS Journal on Computing, INFORMS, vol. 30(1), pages 154-167, February.
    3. Song, Dong-Ping, 2006. "Raw material release time control for complex make-to-order products with stochastic processing times," International Journal of Production Economics, Elsevier, vol. 103(1), pages 371-385, September.
    4. William L. Cooper & Tito Homem-de-Mello, 2007. "Some Decomposition Methods for Revenue Management," Transportation Science, INFORMS, vol. 41(3), pages 332-353, August.
    5. Tito Homem-de-Mello & Qingxia Kong & Rodrigo Godoy-Barba, 2022. "A Simulation Optimization Approach for the Appointment Scheduling Problem with Decision-Dependent Uncertainties," INFORMS Journal on Computing, INFORMS, vol. 34(5), pages 2845-2865, September.
    6. Tito Homem-de-Mello, 2007. "A Study on the Cross-Entropy Method for Rare-Event Probability Estimation," INFORMS Journal on Computing, INFORMS, vol. 19(3), pages 381-394, August.
    7. Wai Kin (Victor) Chan & Lee Schruben, 2008. "Optimization Models of Discrete-Event System Dynamics," Operations Research, INFORMS, vol. 56(5), pages 1218-1237, October.
    8. Johannes Royset, 2013. "On sample size control in sample average approximations for solving smooth stochastic programs," Computational Optimization and Applications, Springer, vol. 55(2), pages 265-309, June.
    9. Tito Homem-de-Mello, 2001. "Estimation of Derivatives of Nonsmooth Performance Measures in Regenerative Systems," Mathematics of Operations Research, INFORMS, vol. 26(4), pages 741-768, November.
    10. Raghu Pasupathy, 2010. "On Choosing Parameters in Retrospective-Approximation Algorithms for Stochastic Root Finding and Simulation Optimization," Operations Research, INFORMS, vol. 58(4-part-1), pages 889-901, August.
    11. Julia Pahl & Stefan Voß & David Woodruff, 2007. "Production planning with load dependent lead times: an update of research," Annals of Operations Research, Springer, vol. 153(1), pages 297-345, September.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Subba Rao, S. & Gunasekaran, A. & Goyal, S. K. & Martikainen, T., 1998. "Waiting line model applications in manufacturing," International Journal of Production Economics, Elsevier, vol. 54(1), pages 1-28, January.
    2. Julia Pahl & Stefan Voß & David Woodruff, 2007. "Production planning with load dependent lead times: an update of research," Annals of Operations Research, Springer, vol. 153(1), pages 297-345, September.
    3. Rong Yuan & Stephen C. Graves, 2016. "Setting optimal production lot sizes and planned lead times in a job shop," International Journal of Production Research, Taylor & Francis Journals, vol. 54(20), pages 6105-6120, October.
    4. Kris Lieckens & Nico Vandaele, 2016. "Differential evolution to solve the lot size problem in stochastic supply chain management systems," Annals of Operations Research, Springer, vol. 242(2), pages 239-263, July.
    5. Thonemann, Ulrich W. & Bradley, James R., 2002. "The effect of product variety on supply-chain performance," European Journal of Operational Research, Elsevier, vol. 143(3), pages 548-569, December.
    6. McGee, Victor E. & Pyke, David F., 1996. "Periodic production scheduling at a fastener manufacturer," International Journal of Production Economics, Elsevier, vol. 46(1), pages 65-87, December.
    7. Benjaafar, Saifallah, 1996. "Modeling and analysis of machine sharing in manufacturing systems," European Journal of Operational Research, Elsevier, vol. 91(1), pages 56-73, May.
    8. Matsuura, Haruki & Tsubone, Hitoshi & Kanezashi, Masakazu, 1996. "Setting planned lead times for multi-operation jobs," European Journal of Operational Research, Elsevier, vol. 88(2), pages 287-303, January.
    9. De Toni, Alberto & Meneghetti, Antonella, 2000. "The production planning process for a network of firms in the textile-apparel industry," International Journal of Production Economics, Elsevier, vol. 65(1), pages 17-32, April.
    10. Shambu, Girish & Suresh, Nallan C., 2000. "Performance of hybrid cellular manufacturing systems: A computer simulation investigation," European Journal of Operational Research, Elsevier, vol. 120(2), pages 436-458, January.
    11. Van Nieuwenhuyse, Inneke & Vandaele, Nico & Rajaram, Kumar & Karmarkar, Uday S., 2007. "Buffer sizing in multi-product multi-reactor batch processes: Impact of allocation and campaign sizing policies," European Journal of Operational Research, Elsevier, vol. 179(2), pages 424-443, June.
    12. Segerstedt, Anders, 1996. "A capacity-constrained multi-level inventory and production control problem," International Journal of Production Economics, Elsevier, vol. 45(1-3), pages 449-461, August.
    13. Huang, Shui-Mu & Su, Jack C.P., 2013. "Impact of product proliferation on the reverse supply chain," Omega, Elsevier, vol. 41(3), pages 626-639.
    14. Gahm, Christian & Uzunoglu, Aykut & Wahl, Stefan & Ganschinietz, Chantal & Tuma, Axel, 2022. "Applying machine learning for the anticipation of complex nesting solutions in hierarchical production planning," European Journal of Operational Research, Elsevier, vol. 296(3), pages 819-836.
    15. Peter J. H. Hulshof & Martijn R. K. Mes & Richard J. Boucherie & Erwin W. Hans, 2016. "Patient admission planning using Approximate Dynamic Programming," Flexible Services and Manufacturing Journal, Springer, vol. 28(1), pages 30-61, June.
    16. Shah, Purvi, 2020. "Managing customer reactions to brand deletion in B2B and B2C contexts," Journal of Retailing and Consumer Services, Elsevier, vol. 57(C).
    17. Kefeli, Ali & Uzsoy, Reha & Fathi, Yahya & Kay, Michael, 2011. "Using a mathematical programming model to examine the marginal price of capacitated resources," International Journal of Production Economics, Elsevier, vol. 131(1), pages 383-391, May.
    18. Hulett, Maria & Damodaran, Purushothaman, 2011. "Analytical approximations to predict performance measures of markovian type manufacturing systems with job failures and parallel processing," European Journal of Operational Research, Elsevier, vol. 212(1), pages 89-99, July.
    19. Hoogstra-Klein, Marjanke A. & Meijboom, Kars, 2021. "A qualitative exploration of the wood product supply chain – investigating the possibilities and desirability of an increased demand orientation," Forest Policy and Economics, Elsevier, vol. 133(C).
    20. Wilhelm, W. E. & Som, Pradip, 1998. "Analysis of a single-stage, single-product, stochastic, MRP-controlled assembly system," European Journal of Operational Research, Elsevier, vol. 108(1), pages 74-93, July.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:inm:ormnsc:v:45:y:1999:i:1:p:86-102. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Asher (email available below). General contact details of provider: https://edirc.repec.org/data/inforea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.