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Lead time considerations for the multi-level capacitated lot-sizing problem

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  • Almeder, Christian
  • Klabjan, Diego
  • Traxler, Renate
  • Almada-Lobo, Bernardo

Abstract

The classical multi-level capacitated lot-sizing problem formulation is often not suitable to correctly capture resource requirements and precedence relations. Depending on lead time assumptions, either the model provides infeasible production plans or plans with costly needless inventory. We tackle this issue by explicitly modeling these two aspects and the synchronization of batches of products in the multi-level lot-sizing and scheduling formulation. Two models are presented; one considering batch production and the other one allowing lot-streaming. Comparisons with traditional models demonstrate the capability of the new approach in delivering more realistic results. The generated production plans are always feasible and cost savings of 30–40 percent compared to classical models are observed.

Suggested Citation

  • Almeder, Christian & Klabjan, Diego & Traxler, Renate & Almada-Lobo, Bernardo, 2015. "Lead time considerations for the multi-level capacitated lot-sizing problem," European Journal of Operational Research, Elsevier, vol. 241(3), pages 727-738.
    • Handle: RePEc:eee:ejores:v:241:y:2015:i:3:p:727-738
    DOI: 10.1016/j.ejor.2014.09.030
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    1. Wolosewicz, Cathy & Dauzère-Pérès, Stéphane & Aggoune, Riad, 2015. "A Lagrangian heuristic for an integrated lot-sizing and fixed scheduling problem," European Journal of Operational Research, Elsevier, vol. 244(1), pages 3-12.
    2. Rohaninejad, Mohammad & Hanzálek, Zdeněk, 2023. "Multi-level lot-sizing and job shop scheduling with lot-streaming: Reformulation and solution approaches," International Journal of Production Economics, Elsevier, vol. 263(C).
    3. Hadi Farhangi, 2021. "Multi-Echelon Supply Chains with Lead Times and Uncertain Demands," SN Operations Research Forum, Springer, vol. 2(3), pages 1-25, September.
    4. Alyne Toscano & Deisemara Ferreira & Reinaldo Morabito, 2019. "A decomposition heuristic to solve the two-stage lot sizing and scheduling problem with temporal cleaning," Flexible Services and Manufacturing Journal, Springer, vol. 31(1), pages 142-173, March.
    5. Melega, Gislaine Mara & de Araujo, Silvio Alexandre & Jans, Raf, 2018. "Classification and literature review of integrated lot-sizing and cutting stock problems," European Journal of Operational Research, Elsevier, vol. 271(1), pages 1-19.
    6. Wu, Kan & Yuan, Xue-Ming, 2016. "Optimal production-inventory policy for an integrated multi-stage supply chain with time-varying demandAuthor-Name: Zhao, Shi Tao," European Journal of Operational Research, Elsevier, vol. 255(2), pages 364-379.
    7. Yiyong Xiao & Meng You & Xiaorong Zuo & Shenghan Zhou & Xing Pan, 2018. "The Uncapacitatied Dynamic Single-Level Lot-Sizing Problem under a Time-Varying Environment and an Exact Solution Approach," Sustainability, MDPI, vol. 10(11), pages 1-14, October.
    8. Nabajyoti Bhattacharjee & Nabendu Sen, 2023. "A Sustainable Inventory Model to Study the Mixing and Bottling Plant of Single Item for Cost Minimization," SN Operations Research Forum, Springer, vol. 4(4), pages 1-18, December.
    9. Dávid Gyulai & András Pfeiffer & László Monostori, 2017. "Robust production planning and control for multi-stage systems with flexible final assembly lines," International Journal of Production Research, Taylor & Francis Journals, vol. 55(13), pages 3657-3673, July.
    10. Giri, B.C. & Bardhan, Sudarshan, 2017. "Sub-supply chain coordination in a three-layer chain under demand uncertainty and random yield in production," International Journal of Production Economics, Elsevier, vol. 191(C), pages 66-73.
    11. Karina Copil & Martin Wörbelauer & Herbert Meyr & Horst Tempelmeier, 2017. "Simultaneous lotsizing and scheduling problems: a classification and review of models," OR Spectrum: Quantitative Approaches in Management, Springer;Gesellschaft für Operations Research e.V., vol. 39(1), pages 1-64, January.
    12. Peter Auer & György Dósa & Tibor Dulai & Armin Fügenschuh & Peggy Näser & Ronald Ortner & Ágnes Werner-Stark, 2021. "A new heuristic and an exact approach for a production planning problem," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 29(3), pages 1079-1113, September.
    13. Gislaine Mara Melega & Silvio Alexandre de Araujo & Reinaldo Morabito, 2020. "Mathematical model and solution approaches for integrated lot-sizing, scheduling and cutting stock problems," Annals of Operations Research, Springer, vol. 295(2), pages 695-736, December.
    14. Gajpal, Yuvraj & Nourelfath, Mustapha, 2015. "Two efficient heuristics to solve the integrated load distribution and production planning problem," Reliability Engineering and System Safety, Elsevier, vol. 144(C), pages 204-214.
    15. Gansterer, Margaretha & Födermayr, Patrick & Hartl, Richard F., 2021. "The capacitated multi-level lot-sizing problem with distributed agents," International Journal of Production Economics, Elsevier, vol. 235(C).

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