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MIP models for production lot sizing problems with distribution costs and cargo arrangement

Author

Listed:
  • Flavio Molina

    (Universidade Federal do Triângulo Mineiro)

  • Reinaldo Morabito

    (Universidade Federal de São Carlos)

  • Silvio Alexandre de Araujo

    (Universidade Estadual Paulista)

Abstract

This study presents mixed integer programming (MIP) models for production lot sizing problems with distribution costs using unit load devices such as pallets and containers. Problems that integrate production lot sizing decisions and loading of the products in vehicles (bins) are also modelled, in which constraints such as weight limits, volume restrictions or the value of the cargo loaded in the bins are considered. In general, these problems involve a trade-off between production, inventory and distribution costs. Lot sizing decisions should take into account production capacity and product demand constraints. Distribution decisions are related to the loading and transport of products in unit load devices. The MIP models are solved by the branch-and-cut method of an optimization package and the results show that these approaches have the potential to address different practical situations.

Suggested Citation

  • Flavio Molina & Reinaldo Morabito & Silvio Alexandre de Araujo, 2016. "MIP models for production lot sizing problems with distribution costs and cargo arrangement," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 67(11), pages 1395-1407, November.
    • Handle: RePEc:pal:jorsoc:v:67:y:2016:i:11:d:10.1057_jors.2016.12
    DOI: 10.1057/jors.2016.12
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    References listed on IDEAS

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    3. Subrata Mitra & Balram Avittathur, 2018. "Application of linear programming in optimizing the procurement and movement of coal for an Indian coal-fired power-generating company," DECISION: Official Journal of the Indian Institute of Management Calcutta, Springer;Indian Institute of Management Calcutta, vol. 45(3), pages 207-224, September.

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