Advanced Search
MyIDEAS: Login to save this article or follow this journal

Improved Rolling Schedules for the Dynamic Single-Level Lot-Sizing Problem

Contents:

Author Info

  • Hartmut Stadtler

    ()
    (Technische Universität Darmstadt, Institut für Betriebswirtschaftslehre, Fachgebiet Fertigungs- und Materialwirtschaft, Hochschulstra\beta e 1, D 64289 Darmstadt, Germany)

Registered author(s):

    Abstract

    A major argument for favoring simple lot-sizing heuristics---like the Silver/Meal or Groff's heuristic---to solve instances of the dynamic single-level uncapacitated lot-sizing problem (SLLSP) instead of exact algorithms---like those of Wagner/Whitin or Federgruen/Tzur---is that exact algorithms applied in a rolling horizon environment are heuristics too and may be outperformed by simple heuristics. This article shows how to modify the model of the SLLSP by looking beyond the planning horizon. Extensive tests within a rolling horizon environment have demonstrated that the modified model solved by an exact algorithm now performs at least as well as well-known heuristics and is fairly insensitive to the length of the planning horizon. Furthermore, our principal idea of improving rolling schedules by considering only a portion of the fixed cost related to a decision with an impact on periods beyond the planning horizon is applicable to a wide range of decision models.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://dx.doi.org/10.1287/mnsc.46.2.318.11924
    Download Restriction: no

    Bibliographic Info

    Article provided by INFORMS in its journal Management Science.

    Volume (Year): 46 (2000)
    Issue (Month): 2 (February)
    Pages: 318-326

    as in new window
    Handle: RePEc:inm:ormnsc:v:46:y:2000:i:2:p:318-326

    Contact details of provider:
    Postal: 7240 Parkway Drive, Suite 300, Hanover, MD 21076 USA
    Phone: +1-443-757-3500
    Fax: 443-757-3515
    Email:
    Web page: http://www.informs.org/
    More information through EDIRC

    Related research

    Keywords: lot-sizing; rolling schedules; planning horizon;

    References

    No references listed on IDEAS
    You can help add them by filling out this form.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as in new window

    Cited by:
    1. Dellaert, N. & Jeunet, J., 2005. "An alternative to safety stock policies for multi-level rolling schedule MRP problems," European Journal of Operational Research, Elsevier, vol. 163(3), pages 751-768, June.
    2. Wilco van den Heuvel & Albert P.M. Wagelmans, 2002. "A Note on Ending Inventory Valuation in Multiperiod Production Scheduling," Tinbergen Institute Discussion Papers 02-067/4, Tinbergen Institute.
    3. Jeunet, Jully, 2006. "Demand forecast accuracy and performance of inventory policies under multi-level rolling schedule environments," International Journal of Production Economics, Elsevier, vol. 103(1), pages 401-419, September.
    4. Jeunet, Jully, 2006. "Demand forecast accuracy and performance of inventory policies for multi-level rolling schedule MRP problems," Economics Papers from University Paris Dauphine 123456789/2078, Paris Dauphine University.
    5. Pürgstaller, Peter & Missbauer, Hubert, 2012. "Rule-based vs. optimisation-based order release in workload control: A simulation study of a MTO manufacturer," International Journal of Production Economics, Elsevier, vol. 140(2), pages 670-680.
    6. Karimi, B. & Fatemi Ghomi, S. M. T. & Wilson, J. M., 2003. "The capacitated lot sizing problem: a review of models and algorithms," Omega, Elsevier, vol. 31(5), pages 365-378, October.
    7. Jans, R.F. & Degraeve, Z., 2005. "Modeling Industrial Lot Sizing Problems: A Review," ERIM Report Series Research in Management ERS-2005-049-LIS, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus Uni.
    8. Meixell, Mary J., 2005. "The impact of setup costs, commonality, and capacity on schedule stability: An exploratory study," International Journal of Production Economics, Elsevier, vol. 95(1), pages 95-107, January.
    9. Narayanan, Arunachalam & Robinson, Powell, 2010. "Evaluation of joint replenishment lot-sizing procedures in rolling horizon planning systems," International Journal of Production Economics, Elsevier, vol. 127(1), pages 85-94, September.
    10. Wilco van den Heuvel & Albert P.M. Wagelmans, 2002. "A Note on Ending Inventory Valuation in Multiperiod Production Scheduling," Tinbergen Institute Discussion Papers 02-067/4, Tinbergen Institute.
    11. Merce, C. & Fontan, G., 2003. "MIP-based heuristics for capacitated lotsizing problems," International Journal of Production Economics, Elsevier, vol. 85(1), pages 97-111, July.
    12. Dellaert, Nico & Jeunet, Jully, 2003. "Controlling multi-level production in a rolling-schedule environment," International Journal of Production Economics, Elsevier, vol. 85(1), pages 113-121, July.
    13. Sahin, Funda & Powell Robinson, E. & Gao, Li-Lian, 2008. "Master production scheduling policy and rolling schedules in a two-stage make-to-order supply chain," International Journal of Production Economics, Elsevier, vol. 115(2), pages 528-541, October.
    14. van den Heuvel, W. & Wagelmans, A.P.M., 2007. "Worst case analysis for a general class of on-line lot-sizing heuristics," Econometric Institute Research Papers EI 2007-46, Erasmus University Rotterdam, Erasmus School of Economics (ESE), Econometric Institute.
    15. Toy, Ayhan Özgür & Berk, Emre, 2013. "Dynamic lot sizing for a warm/cold process: Heuristics and insights," International Journal of Production Economics, Elsevier, vol. 145(1), pages 53-66.
    16. Schmid, Verena & Doerner, Karl F. & Laporte, Gilbert, 2013. "Rich routing problems arising in supply chain management," European Journal of Operational Research, Elsevier, vol. 224(3), pages 435-448.

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:inm:ormnsc:v:46:y:2000:i:2:p:318-326. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mirko Janc).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.