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Lot sizing when yields increase during the production run

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  • Karla E. Bourland
  • Candace Arai Yano

Abstract

We investigate the problem of determining lot sizes for multiple items when the expected percentage of acceptable output increases with the duration of the production run, usually due to adjustments made during the early part of the production run. Such problems arise in metal stamping, textile finishing processes, and a variety of other industries. The goal is to minimize the total cost of production, inventory holding costs, and setup costs (where applicable). We develop a heuristic procedure based on a Lagrangian relaxation that differs from relaxations used in earlier studies. We use various properties of the objective function to guide the adjustment of the initial solution from the relaxation toward feasibility. Computational results indicate that, on the average, the heuristic produces solutions within 4.9% of the lower bound obtained from the Lagrangian relaxation. © 1996 John Wiley & Sons, Inc.

Suggested Citation

  • Karla E. Bourland & Candace Arai Yano, 1996. "Lot sizing when yields increase during the production run," Naval Research Logistics (NRL), John Wiley & Sons, vol. 43(8), pages 1035-1047, December.
    • Handle: RePEc:wly:navres:v:43:y:1996:i:8:p:1035-1047
    DOI: 10.1002/(SICI)1520-6750(199612)43:83.0.CO;2-F
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    References listed on IDEAS

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