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Determining Production Schedules Under Base-Stock Policies in Single Facility Multi-Item Production Systems

Author

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  • Awi Federgruen

    (Columbia University, New York, New York)

  • Ziv Katalan

    (University of Pennsylvania, Philadelphia, Pennsylvania)

Abstract

In this paper we address periodic base-stock policies for stochastic economic lot scheduling problems. These represent manufacturing settings in which multiple items compete for the availability of a common capacity source, in the presence of setup times and/or costs, incurred when switching between items, and in the presence of uncertainty regarding demand patterns, production, and setup times. Under periodic base-stock policies, items are produced according to a given periodic item-sequence. This paper derives effective heuristics for the design of a periodic item-sequence minimizing system-wide costs. This sequence is constructed based on desirable production frequencies for the items, obtained as the solution of lower bound mathematical programs. An extensive numerical study gauges the quality of the proposed heuristics.

Suggested Citation

  • Awi Federgruen & Ziv Katalan, 1998. "Determining Production Schedules Under Base-Stock Policies in Single Facility Multi-Item Production Systems," Operations Research, INFORMS, vol. 46(6), pages 883-898, December.
    • Handle: RePEc:inm:oropre:v:46:y:1998:i:6:p:883-898
    DOI: 10.1287/opre.46.6.883
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    References listed on IDEAS

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    Cited by:

    1. Winands, E.M.M. & Adan, I.J.B.F. & van Houtum, G.J., 2011. "The stochastic economic lot scheduling problem: A survey," European Journal of Operational Research, Elsevier, vol. 210(1), pages 1-9, April.
    2. Hongler, Max-Olivier & Ciprut, Philippe, 2001. "Production indices obtained by a myopic policy for non-Markovian dynamics," International Journal of Production Economics, Elsevier, vol. 74(1-3), pages 115-123, December.
    3. Chen Shaoxiang, 2004. "The Optimality of Hedging Point Policies for Stochastic Two-Product Flexible Manufacturing Systems," Operations Research, INFORMS, vol. 52(2), pages 312-322, April.
    4. Brander, Par & Forsberg, Rolf, 2006. "Determination of safety stocks for cyclic schedules with stochastic demands," International Journal of Production Economics, Elsevier, vol. 104(2), pages 271-295, December.
    5. Jodlbauer, Herbert & Reitner, Sonja, 2012. "Optimizing service-level and relevant cost for a stochastic multi-item cyclic production system," International Journal of Production Economics, Elsevier, vol. 136(2), pages 306-317.
    6. Löhndorf, Nils & Riel, Manuel & Minner, Stefan, 2014. "Simulation optimization for the stochastic economic lot scheduling problem with sequence-dependent setup times," International Journal of Production Economics, Elsevier, vol. 157(C), pages 170-176.
    7. Grasman, Scott E. & Olsen, Tava Lennon & Birge, John R., 2005. "Finite buffer polling models with routing," European Journal of Operational Research, Elsevier, vol. 165(3), pages 794-809, September.
    8. Wagner, Michael & Smits, Sanne R., 2004. "A local search algorithm for the optimization of the stochastic economic lot scheduling problem," International Journal of Production Economics, Elsevier, vol. 90(3), pages 391-402, August.
    9. Briskorn, Dirk & Zeise, Philipp & Packowski, Josef, 2016. "Quasi-fixed cyclic production schemes for multiple products with stochastic demand," European Journal of Operational Research, Elsevier, vol. 252(1), pages 156-169.
    10. Lopez de Haro, Santiago & Gershwin, Stanley B. & Rosenfield, Donald B., 2009. "Schedule evaluation in unstable manufacturing environments," International Journal of Production Economics, Elsevier, vol. 121(1), pages 183-194, September.
    11. Kampf, M. & Kochel, P., 2006. "Simulation-based sequencing and lot size optimisation for a production-and-inventory system with multiple items," International Journal of Production Economics, Elsevier, vol. 104(1), pages 191-200, November.
    12. Wei-Min Lan & Tava Lennon Olsen, 2006. "Multiproduct Systems with Both Setup Times and Costs: Fluid Bounds and Schedules," Operations Research, INFORMS, vol. 54(3), pages 505-522, June.
    13. Chiu, Yuan-Shyi Peter & Chiu, Victoria & Lin, Hong-Dar & Chang, Huei-Hsin, 2019. "Meeting multiproduct demand with a hybrid inventory replenishment system featuring quality reassurance," Operations Research Perspectives, Elsevier, vol. 6(C).
    14. Rappold, James A. & Yoho, Keenan D., 2014. "Setting safety stocks for stable rotation cycle schedules," International Journal of Production Economics, Elsevier, vol. 156(C), pages 146-158.

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