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Single-Stage Resource Allocation and Economic Lot Scheduling on Multiple, Nonidentical Production Lines

  • Ramesh Bollapragada

    (Bell Laboratories, Lucent Technologies, Room 2L-515, 101 Crawfords Corner Road, Holmdel, New Jersey 07733)

  • Uday Rao

    (Graduate School of Industrial Administration, Carnegie-Mellon University, Pittsburgh, Pennsylvania 15213)

Registered author(s):

    This paper focuses on simultaneous resource allocation, lot-sizing, and scheduling in a multimachine, deterministic ELSP environment. We consider the problem of apportioning item production to distinct manufacturing lines with different costs and capabilities (production rates). The objective is to minimize the long-run average production, setup, inventory, and shortage penalty costs (due to lost sales). Restricting attention to rotation schedules, we develop a concave minimization model of the problem, generate heuristic solutions and a lower bound on the cost of any feasible solution. Computational experiments indicate that our heuristic solution is within a few percent of the lower bound. We also investigate sensitivity of costs to model parameters, and illustrate how our model may be used to determine target values for equipment utilization.

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    File URL: http://dx.doi.org/10.1287/mnsc.45.6.889
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    Article provided by INFORMS in its journal Management Science.

    Volume (Year): 45 (1999)
    Issue (Month): 6 (June)
    Pages: 889-904

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    Handle: RePEc:inm:ormnsc:v:45:y:1999:i:6:p:889-904
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