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A 3-level integrated lot sizing and cutting stock problem applied to a truck suspension factory

Author

Listed:
  • Pedro Rochavetz de Lara Andrade

    (Paraná Federal University of Technology (UTFPR)
    São Paulo State University (UNESP))

  • Silvio Alexandre De Araujo

    (São Paulo State University (UNESP))

  • Adriana Cristina Cherri

    (São Paulo State University (UNESP)
    INESC – TEC)

  • Felipe Kesrouani Lemos

    (São Paulo State University (UNESP))

Abstract

This paper studies the process of cutting steel bars in a truck suspension factory with the objective of reducing its inventory costs and material losses. A mathematical model is presented that focuses on decisions for a medium-term horizon (4 periods of 2 months). This approach addresses the one-dimensional 3-level integrated lot sizing and cutting stock problem, considering demand, inventory costs and stock level limits for bars (objects-level 1), springs (items-level 2) and spring bundles (final products-level 3), as well as the acquisition of bars as a decision variable. The solution to the proposed mathematical model is reached through an optimization package, using column generation along with a method for achieving integer solutions. The results obtained with real data demonstrate that the method provides significantly better solutions than those carried out at the company, whilst using reduced computational time. Additionally, the application of tests with random data enabled the analysis of both the effect of varying parameters in the solution, which provides managerial insights, and the overall performance of the method.

Suggested Citation

  • Pedro Rochavetz de Lara Andrade & Silvio Alexandre De Araujo & Adriana Cristina Cherri & Felipe Kesrouani Lemos, 2025. "A 3-level integrated lot sizing and cutting stock problem applied to a truck suspension factory," TOP: An Official Journal of the Spanish Society of Statistics and Operations Research, Springer;Sociedad de Estadística e Investigación Operativa, vol. 33(1), pages 74-101, April.
    • Handle: RePEc:spr:topjnl:v:33:y:2025:i:1:d:10.1007_s11750-024-00679-7
    DOI: 10.1007/s11750-024-00679-7
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