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Simultaneous Product-Mix Planning, Lot Sizing and Scheduling at Bottleneck Facilities

Author

Listed:
  • Sin Hoon Hum

    (National University of Singapore)

  • Rakesh K. Sarin

    (University of California, Los Angeles, California)

Abstract

Planning and scheduling of bottleneck operations is a fundamental problem in production management because bottleneck facilities control the output and profitability of the entire system. We develop optimal solutions for the product-mix planning, lot sizing, and scheduling of such bottleneck facilities. The integrated product-mix planning, lot sizing and scheduling problem yields a nonconvex, mixed-integer nonlinear program which is difficult to solve for global optimality. Our strategy is to characterize the optimal solution and reduce the overall problem to a series of smaller, single variable, constrained optimization problems which can be solved relatively easily. We provide results for the two-product case for both the single-stage and two-stage production systems and for two types of production environments. Optimal solutions are also provided for the single-stage multiproduct case when all products are produced under a common-cycle restriction. Our work represents an extension of classical product-mix models to include the economic lot sizing and scheduling model.

Suggested Citation

  • Sin Hoon Hum & Rakesh K. Sarin, 1991. "Simultaneous Product-Mix Planning, Lot Sizing and Scheduling at Bottleneck Facilities," Operations Research, INFORMS, vol. 39(2), pages 296-307, April.
    • Handle: RePEc:inm:oropre:v:39:y:1991:i:2:p:296-307
    DOI: 10.1287/opre.39.2.296
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    Cited by:

    1. 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.

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