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Lot Sizing in General Assembly Systems with Setup Costs, Setup Times, and Multiple Constrained Resources

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Author Info

  • Elena Katok

    (Division of Economics and Business, Colorado School of Mines, Golden, Colorado 80401)

  • Holly S. Lewis

    (Department of Management Science and Information Systems, The Pennsylvania State University, University Park, Pennsylvania 16802)

  • Terry P. Harrison

    (Department of Management Science and Information Systems, The Pennsylvania State University, University Park, Pennsylvania 16802)

Abstract

We introduce a heuristic method for finding good, feasible solutions for multiproduct lot sizing problems with general assembly structures, multiple constrained resources, and nonzero setup costs and setup times. We evaluate the performance of this heuristic by comparing its solutions to optimal solutions of small randomly generated problems and to time-truncated Optimization Subroutine Library (OSL) solutions of medium-sized randomly generated problems. In the first case, the heuristic locates solutions averaging 4 percent worse than optimal in less than 1 percent of time required by OSL. The heuristic solutions to medium-sized problems are approximately 26 percent better than solutions OSL finds after 10,000 CPU seconds, and the heuristic finds these solutions in approximately 10 percent of OSL time.

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File URL: http://dx.doi.org/10.1287/mnsc.44.6.859
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Bibliographic Info

Article provided by INFORMS in its journal Management Science.

Volume (Year): 44 (1998)
Issue (Month): 6 (June)
Pages: 859-877

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Handle: RePEc:inm:ormnsc:v:44:y:1998:i:6:p:859-877

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Keywords: Lot Sizing; General Assembly System; Heuristics; Integer Programming;

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Cited by:
  1. Sahling, Florian & Buschkühl, Lisbeth & Tempelmeier, Horst & Helber, Stefan, 2008. "Solving a Multi-Level Capacitated Lot Sizing Problem with Multi-Period Setup Carry-Over via a Fix-and-Optimize Heuristic," Hannover Economic Papers (HEP) dp-400, Leibniz Universität Hannover, Wirtschaftswissenschaftliche Fakultät.
  2. Helber, Stefan & Sahling, Florian, 2010. "A fix-and-optimize approach for the multi-level capacitated lot sizing problem," International Journal of Production Economics, Elsevier, vol. 123(2), pages 247-256, February.
  3. Süral, Haldun & Denizel, Meltem & Van Wassenhove, Luk N., 2009. "Lagrangean relaxation based heuristics for lot sizing with setup times," European Journal of Operational Research, Elsevier, vol. 194(1), pages 51-63, April.
  4. Sarker, Bhaba R. & Diponegoro, Ahmad, 2009. "Optimal production plans and shipment schedules in a supply-chain system with multiple suppliers and multiple buyers," European Journal of Operational Research, Elsevier, vol. 194(3), pages 753-773, May.
  5. Brahimi, Nadjib & Dauzere-Peres, Stephane & Najid, Najib M. & Nordli, Atle, 2006. "Single item lot sizing problems," European Journal of Operational Research, Elsevier, vol. 168(1), pages 1-16, January.
  6. VAN VYVE, Mathieu & POCHET, Yves, 2001. "A general heuristic or production planning problems," CORE Discussion Papers 2001056, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  7. BELVAUX, Gaetan & WOLSEY, Laurence A., 1998. "Lot-sizing problems: modelling issues and a specialized branch-and-cut system BC-PROD," CORE Discussion Papers 1998049, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  8. AkartunalI, Kerem & Miller, Andrew J., 2009. "A heuristic approach for big bucket multi-level production planning problems," European Journal of Operational Research, Elsevier, vol. 193(2), pages 396-411, March.
  9. Jans, Raf & Degraeve, Zeger, 2007. "Meta-heuristics for dynamic lot sizing: A review and comparison of solution approaches," European Journal of Operational Research, Elsevier, vol. 177(3), pages 1855-1875, March.
  10. Berretta, Regina & Rodrigues, Luiz Fernando, 2004. "A memetic algorithm for a multistage capacitated lot-sizing problem," International Journal of Production Economics, Elsevier, vol. 87(1), pages 67-81, January.

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