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OR Practice—Determining Lot Sizes and Resource Requirements: A Review

Author

Listed:
  • Harish C. Bahl

    (State University of New York at Buffalo, Buffalo, New York)

  • Larry P. Ritzman

    (Ohio State University, Columbus, Ohio)

  • Jatinder N. D. Gupta

    (Ball State University, Muncie, Indiana)

Abstract

Inventory planning can become extremely complicated in situations with nontrivial setup times and/or costs. The pervasiveness of this type of problem in actual practice, combined with its computational complexity, has long attracted researchers' attention. Although the most general model formulations still defy optimization when applied to realistically sized problems, many recent contributions are both innovative and promising. This article concentrates on the lot-sizing and capacity dimensions of production planning. We review selected contributions in four major categories, drawing from both practitioner- and research-based literature. We assess the strengths and weaknesses of these contributions, and suggest promising research avenues. We conclude that capacity limitations, as well as other realities of plant environments, such as scrap, demand uncertainties or inaccurate data, are the Achilles heel of lot-sizing research. Directing attention to these complex environments is a challenge that offers great rewards for actual implementation.

Suggested Citation

  • Harish C. Bahl & Larry P. Ritzman & Jatinder N. D. Gupta, 1987. "OR Practice—Determining Lot Sizes and Resource Requirements: A Review," Operations Research, INFORMS, vol. 35(3), pages 329-345, June.
    • Handle: RePEc:inm:oropre:v:35:y:1987:i:3:p:329-345
    DOI: 10.1287/opre.35.3.329
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    Citations

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    Cited by:

    1. Drexl, Andreas & Kimms, Alf, 1996. "Lot sizing and scheduling: Survey and extensions," Manuskripte aus den Instituten für Betriebswirtschaftslehre der Universität Kiel 421, Christian-Albrechts-Universität zu Kiel, Institut für Betriebswirtschaftslehre.
    2. Daniel Quadt & Heinrich Kuhn, 2009. "Capacitated lot‐sizing and scheduling with parallel machines, back‐orders, and setup carry‐over," Naval Research Logistics (NRL), John Wiley & Sons, vol. 56(4), pages 366-384, June.
    3. A. Kimms, 1997. "Demand shuffle—A method for multilevel proportional lot sizing and scheduling," Naval Research Logistics (NRL), John Wiley & Sons, vol. 44(4), pages 319-340, June.
    4. Drexl, Andreas & Fleischmann, B. & Günther, H.-O. & Stadtler, H. & Tempelmeier, H., 1993. "Konzeptionelle Grundlagen kapazitätsorientierter PPS-Systeme," Manuskripte aus den Instituten für Betriebswirtschaftslehre der Universität Kiel 315, Christian-Albrechts-Universität zu Kiel, Institut für Betriebswirtschaftslehre.
    5. Fabrizio Marinelli & Maria Nenni & Antonio Sforza, 2007. "Capacitated lot sizing and scheduling with parallel machines and shared buffers: A case study in a packaging company," Annals of Operations Research, Springer, vol. 150(1), pages 177-192, March.
    6. Drexl, Andreas & Haase, Knut, 1992. "A new type of model for multi-item capacitated dynamic lotsizing and scheduling," Manuskripte aus den Instituten für Betriebswirtschaftslehre der Universität Kiel 286, Christian-Albrechts-Universität zu Kiel, Institut für Betriebswirtschaftslehre.
    7. Sônia Poltroniere & Kelly Poldi & Franklina Toledo & Marcos Arenales, 2008. "A coupling cutting stock-lot sizing problem in the paper industry," Annals of Operations Research, Springer, vol. 157(1), pages 91-104, January.
    8. Brahimi, Nadjib & Absi, Nabil & Dauzère-Pérès, Stéphane & Nordli, Atle, 2017. "Single-item dynamic lot-sizing problems: An updated survey," European Journal of Operational Research, Elsevier, vol. 263(3), pages 838-863.
    9. Alf Kimms, 1998. "Ablauforganisation bei Serienproduktion in Fließfertigungssystemen," Schmalenbach Journal of Business Research, Springer, vol. 50(7), pages 641-655, July.
    10. D-H Lee & P Xirouchakis, 2004. "A two-stage heuristic for disassembly scheduling with assembly product structure," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 55(3), pages 287-297, March.
    11. S. Selcuk Erenguc & H. Murat Mercan, 1990. "A multifamily dynamic lot‐sizing model with coordinated replenishments," Naval Research Logistics (NRL), John Wiley & Sons, vol. 37(4), pages 539-558, August.
    12. Wu, Xiang & (Yale) Gong, Yeming & Xu, Haoxuan & Chu, Chengbin & Zhang, Jinlong, 2017. "Dynamic lot-sizing models with pricing for new products," European Journal of Operational Research, Elsevier, vol. 260(1), pages 81-92.

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