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Single-Stage Resource Allocation and Economic Lot Scheduling on Multiple, Nonidentical Production Lines

Author

Listed:
  • Ramesh Bollapragada

    (Bell Laboratories, Lucent Technologies, Room 2L-515, 101 Crawfords Corner Road, Holmdel, New Jersey 07733)

  • Uday Rao

    (Graduate School of Industrial Administration, Carnegie-Mellon University, Pittsburgh, Pennsylvania 15213)

Abstract

This paper focuses on simultaneous resource allocation, lot-sizing, and scheduling in a multimachine, deterministic ELSP environment. We consider the problem of apportioning item production to distinct manufacturing lines with different costs and capabilities (production rates). The objective is to minimize the long-run average production, setup, inventory, and shortage penalty costs (due to lost sales). Restricting attention to rotation schedules, we develop a concave minimization model of the problem, generate heuristic solutions and a lower bound on the cost of any feasible solution. Computational experiments indicate that our heuristic solution is within a few percent of the lower bound. We also investigate sensitivity of costs to model parameters, and illustrate how our model may be used to determine target values for equipment utilization.

Suggested Citation

  • Ramesh Bollapragada & Uday Rao, 1999. "Single-Stage Resource Allocation and Economic Lot Scheduling on Multiple, Nonidentical Production Lines," Management Science, INFORMS, vol. 45(6), pages 889-904, June.
    • Handle: RePEc:inm:ormnsc:v:45:y:1999:i:6:p:889-904
    DOI: 10.1287/mnsc.45.6.889
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    References listed on IDEAS

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    1. Jose Juan Carreno, 1990. "Economic Lot Scheduling for Multiple Products on Parallel Identical Processors," Management Science, INFORMS, vol. 36(3), pages 348-358, March.
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    Cited by:

    1. Moshe Dror & Kenneth R. Smith & Candace Arai Yano, 2009. "Deux Chemicals Inc. Goes Just-in-Time," Interfaces, INFORMS, vol. 39(6), pages 503-515, December.
    2. Pesenti, Raffaele & Ukovich, Walter, 2003. "Economic lot scheduling on multiple production lines with resource constraints," International Journal of Production Economics, Elsevier, vol. 81(1), pages 469-481, January.
    3. Bollapragada, Ramesh & Croce, Federico Della & Ghirardi, Marco, 2011. "Discrete-time, economic lot scheduling problem on multiple, non-identical production lines," European Journal of Operational Research, Elsevier, vol. 215(1), pages 89-96, November.
    4. Nazrul Shaikh & Vittal Prabhu & Danilo Abril & David Sánchez & Jorge Arias & Esteban Rodríguez & Germán Riaño, 2011. "Kimberly-Clark Latin America Builds an Optimization-Based System for Machine Scheduling," Interfaces, INFORMS, vol. 41(5), pages 455-465, October.
    5. Teunter, Ruud & Kaparis, Konstantinos & Tang, Ou, 2008. "Multi-product economic lot scheduling problem with separate production lines for manufacturing and remanufacturing," European Journal of Operational Research, Elsevier, vol. 191(3), pages 1241-1253, December.
    6. Alper Atamtürk & Andrés Gómez, 2020. "Submodularity in Conic Quadratic Mixed 0–1 Optimization," Operations Research, INFORMS, vol. 68(2), pages 609-630, March.
    7. Torabi, S.A. & Karimi, B. & Fatemi Ghomi, S.M.T., 2005. "The common cycle economic lot scheduling in flexible job shops: The finite horizon case," International Journal of Production Economics, Elsevier, vol. 97(1), pages 52-65, July.

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