Improved Rolling Schedules for the Dynamic Single-Level Lot-Sizing Problem
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
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Article provided by INFORMS in its journal Management Science.
Volume (Year): 46 (2000)
Issue (Month): 2 (February)
Pages: 318-326
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Keywords: lot-sizing; rolling schedules; planning horizon;References
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Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
- 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.
- Heuvel, W. van den & Wagelmans, A.P.M., 2002. "A Note on Ending Inventory Valuation in Multiperiod Production Scheduling," Research Paper ERS-2002-63-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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
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