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The Effect of Externalizing Setups in the Economic Lot Scheduling Problem

Author

Listed:
  • Guillermo Gallego

    (Columbia University, New York, New York)

  • Ilkyeong Moon

    (Columbia University, New York, New York)

Abstract

This paper considers the Economic Lot Scheduling Problem with Reducible Setup Times (ELSP-RS), that is, determining a multiple product, single facility cyclic schedule to minimize holding and setup costs when setup times can be reduced, at the expense of setup costs, by externalizing setup operations. We develop an efficient algorithm that finds an optimal or near-optimal production schedule. Computational results indicate that dramatic savings are possible for highly utilized facilities.

Suggested Citation

  • Guillermo Gallego & Ilkyeong Moon, 1992. "The Effect of Externalizing Setups in the Economic Lot Scheduling Problem," Operations Research, INFORMS, vol. 40(3), pages 614-619, June.
    • Handle: RePEc:inm:oropre:v:40:y:1992:i:3:p:614-619
    DOI: 10.1287/opre.40.3.614
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    Citations

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    Cited by:

    1. Kuik, Roelof & Tielemans, Peter F. J., 1998. "Analysis of expected queueing delays for decision making in production planning," European Journal of Operational Research, Elsevier, vol. 110(3), pages 658-681, November.
    2. 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.
    3. Khouja, Moutaz & Michalewicz, Zgibniew & Wilmot, Michael, 1998. "The use of genetic algorithms to solve the economic lot size scheduling problem," European Journal of Operational Research, Elsevier, vol. 110(3), pages 509-524, November.
    4. Khouja, Moutaz, 1997. "The scheduling of economic lot sizes on volume flexible production systems," International Journal of Production Economics, Elsevier, vol. 48(1), pages 73-86, January.
    5. 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.
    6. Giri, B. C. & Moon, I., 2004. "Note on an economic lot scheduling problem under budgetary and capacity constraints," International Journal of Production Economics, Elsevier, vol. 91(3), pages 229-234, October.
    7. Guillermo Gallego & Ilkyeong Moon, 1995. "Strategic investment to reduce setup times in the economic lot scheduling problem," Naval Research Logistics (NRL), John Wiley & Sons, vol. 42(5), pages 773-790, August.
    8. B.C. Giri & I. Moon & W.Y. Yun, 2003. "Scheduling economic lot sizes in deteriorating production systems," Naval Research Logistics (NRL), John Wiley & Sons, vol. 50(6), pages 650-661, September.

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