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Scheduling recurrent construction

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  • Thomas Schmitt
  • Bruce Faaland

Abstract

A problem we call recurrent construction involves manufacturing large, complex, expensive products such as airplanes, houses, and ships. Customers order configurations of these products well in advance of due dates for delivery. Early delivery may not be permitted. How should the manufacturer determine when to purchase and release materials before fabrication, assembly, and delivery? Major material expenses, significant penalties for deliveries beyond due dates, and long product makespans in recurrent construction motivate choosing a release timetable that maximizes the net present value of cash flows. Our heuristic first projects an initial schedule that dispatches worker teams to tasks for the backlogged products, and then solves a series of maximal closure problems to find material release times that maximize NPV. This method compares favorably with other well‐known work release heuristics in solution quality for large problems over a wide range of operating conditions, including order strength, cost structure, utilization level, batch policy, and uncertainty level. Computation times exhibit near linear growth in problem size. © 2004 Wiley Periodicals, Inc. Naval Research Logistics, 2004

Suggested Citation

  • Thomas Schmitt & Bruce Faaland, 2004. "Scheduling recurrent construction," Naval Research Logistics (NRL), John Wiley & Sons, vol. 51(8), pages 1102-1128, December.
    • Handle: RePEc:wly:navres:v:51:y:2004:i:8:p:1102-1128
    DOI: 10.1002/nav.20043
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    1. Karen A. Brown & Thomas G. Schmitt & Richard J. Schonberger & Stephen Dennis, 2004. "Quadrant Homes Applies Lean Concepts in a Project Environment," Interfaces, INFORMS, vol. 34(6), pages 442-450, December.
    2. Aria Shahsavar & Nima Zoraghi & Babak Abbasi, 2018. "Integration of resource investment problem with quantity discount problem in material ordering for minimizing resource costs of projects," Operational Research, Springer, vol. 18(2), pages 315-342, July.

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