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A Modified Simulated Annealing Algorithm for Optimal Capacity Allocation in Make-to-Order Job-Shops

In: Proceedings of 2012 3rd International Asia Conference on Industrial Engineering and Management Innovation (IEMI2012)

Author

Listed:
  • Liang Huang

    (Northeastern University at Qinhuangdao)

Abstract

This paper presents a new capacity allocation method to support decisions in the design or redesign of a make-to-order job-shop with stochastic orders and processing times. The solutions for capacity allocation can be adding/removing machines or work shifts at every work stations. A bi-criteria objective function comprising fixed costs and tardiness penalty is used to evaluate each solution. A simulation model is applied to compute the objective function iteratively in a modified simulated annealing procedure until a feasible and profitable solution is generated. Bottleneck analysis is used as guidance for the neighborhood-generation in the modified simulated annealing procedure in order to accelerate convergence. Consequently, the run time of the procedure is short enough for practical use. Different problems were tested. Solutions from the proposed method were compared to those from the classical simulated annealing and the comparison showed relatively positive results.

Suggested Citation

  • Liang Huang, 2013. "A Modified Simulated Annealing Algorithm for Optimal Capacity Allocation in Make-to-Order Job-Shops," Springer Books, in: Runliang Dou (ed.), Proceedings of 2012 3rd International Asia Conference on Industrial Engineering and Management Innovation (IEMI2012), edition 127, chapter 0, pages 139-145, Springer.
    • Handle: RePEc:spr:sprchp:978-3-642-33012-4_15
    DOI: 10.1007/978-3-642-33012-4_15
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