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Multiproduct Systems with Both Setup Times and Costs: Fluid Bounds and Schedules

Author

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  • Wei-Min Lan

    (Industrial and Operations Engineering Department, University of Michigan, 1205 Beal Avenue, Ann Arbor, Michigan 48109-2117)

  • Tava Lennon Olsen

    (John M. Olin School of Business, Washington University in St. Louis, One Brookings Drive, St. Louis, Missouri 63130-4899)

Abstract

This paper considers a multiproduct, single-server production system where both setup times and costs are incurred whenever the server changes product. The system is make-to-order with a per unit backlogging cost. The objective is to minimize the long-run average cost per unit time. Using a fluid model, we provide a closed-form lower bound on system performance. This bound is also shown to provide a lower bound for stochastic systems when scheduling is local or static, but is only an approximation when scheduling is global or dynamic. The fluid bound suggests both local and global scheduling heuristics, which are tested for the stochastic system via a simulation study.

Suggested Citation

  • 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.
    • Handle: RePEc:inm:oropre:v:54:y:2006:i:3:p:505-522
    DOI: 10.1287/opre.1060.0298
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    References listed on IDEAS

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    Cited by:

    1. Niv Buchbinder & Tracy Kimbrel & Retsef Levi & Konstantin Makarychev & Maxim Sviridenko, 2013. "Online Make-to-Order Joint Replenishment Model: Primal-Dual Competitive Algorithms," Operations Research, INFORMS, vol. 61(4), pages 1014-1029, August.
    2. Carri W. Chan & Mor Armony & Nicholas Bambos, 2016. "Maximum weight matching with hysteresis in overloaded queues with setups," Queueing Systems: Theory and Applications, Springer, vol. 82(3), pages 315-351, April.
    3. uit het Broek, Michiel A.J. & Van der Heide, Gerlach & Van Foreest, Nicky D., 2020. "Energy-saving policies for temperature-controlled production systems with state-dependent setup times and costs," European Journal of Operational Research, Elsevier, vol. 287(3), pages 916-928.
    4. Zhao, Yaping & Xu, Xiaoyun & Li, Haidong & Liu, Yanni, 2016. "Prioritized customer order scheduling to maximize throughput," European Journal of Operational Research, Elsevier, vol. 255(2), pages 345-356.
    5. Alexey Matveev & Varvara Feoktistova & Ksenia Bolshakova, 2016. "On Global Near Optimality of Special Periodic Protocols for Fluid Polling Systems with Setups," Journal of Optimization Theory and Applications, Springer, vol. 171(3), pages 1055-1070, December.
    6. 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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