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Lot Sizing in General Assembly Systems with Setup Costs, Setup Times and Multiple Constrained Resources

  • Katok, Elena
  • Holly S. Lewis
  • Terry P. Harrison

We introduce a heuristic method for finding good feasible solutions for multi-product lot sizing problems with general assembly structures, multiple constrained resources, and non-zero setup costs and setup times. We evaluate the performance of this heuristic by comparing its solutions to optimal solutions of small randomly generated problems, and to time-truncated Optimization Subroutine Library (OSL) solutions of medium-sized randomly generated problems. In the first case, the heuristic locates solutions averaging 4% worse than optimal in less than 1% of time required by OSL. The heuristic solutions to medium-sized problems are approximately 26% better than solutions OSL finds after 10,000 CPU seconds, and the heuristic finds these solutions in approximately 10% of OSL's time.

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Paper provided by University of Bonn, Germany in its series Discussion Paper Serie B with number 346.

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Length: pages
Date of creation: Jun 1995
Date of revision:
Handle: RePEc:bon:bonsfb:346
Contact details of provider: Postal:
Bonn Graduate School of Economics, University of Bonn, Adenauerallee 24 - 26, 53113 Bonn, Germany

Fax: +49 228 73 6884
Web page: http://www.bgse.uni-bonn.de

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  1. Kuik, Roelof & Salomon, Marc & van Wassenhove, Luk N., 1994. "Batching decisions: structure and models," European Journal of Operational Research, Elsevier, vol. 75(2), pages 243-263, June.
  2. Yves Pochet & Laurence A. Wolsey, 1991. "Solving Multi-Item Lot-Sizing Problems Using Strong Cutting Planes," Management Science, INFORMS, vol. 37(1), pages 53-67, January.
  3. Maes, Johan & McClain, John O. & Van Wassenhove, Luk N., 1991. "Multilevel capacitated lotsizing complexity and LP-based heuristics," European Journal of Operational Research, Elsevier, vol. 53(2), pages 131-148, July.
  4. Kuik, R. & Salomon, M., 1990. "Multi-level lot-sizing problem: Evaluation of a simulated-annealing heuristic," European Journal of Operational Research, Elsevier, vol. 45(1), pages 25-37, March.
  5. William W. Trigeiro & L. Joseph Thomas & John O. McClain, 1989. "Capacitated Lot Sizing with Setup Times," Management Science, INFORMS, vol. 35(3), pages 353-366, March.
  6. Harvey M. Wagner & Thomson M. Whitin, 1958. "Dynamic Version of the Economic Lot Size Model," Management Science, INFORMS, vol. 5(1), pages 89-96, October.
  7. Joseph D. Blackburn & Robert A. Millen, 1982. "Improved Heuristics for Multi-Stage Requirements Planning Systems," Management Science, INFORMS, vol. 28(1), pages 44-56, January.
  8. Moustapha Diaby & Harish C. Bahl & Mark H. Karwan & Stanley Zionts, 1992. "A Lagrangean Relaxation Approach for Very-Large-Scale Capacitated Lot-Sizing," Management Science, INFORMS, vol. 38(9), pages 1329-1340, September.
  9. Tempelmeier, Horst & Helber, Stefan, 1994. "A heuristic for dynamic multi-item multi-level capacitated lotsizing for general product structures," European Journal of Operational Research, Elsevier, vol. 75(2), pages 296-311, June.
  10. Terry P. Harrison & Holly S. Lewis, 1996. "Lot Sizing in Serial Assembly Systems with Multiple Constrained Resources," Management Science, INFORMS, vol. 42(1), pages 19-36, January.
  11. Peter J. Billington & John O. McClain & L. Joseph Thomas, 1986. "Heuristics for Multilevel Lot-Sizing with a Bottleneck," Management Science, INFORMS, vol. 32(8), pages 989-1006, August.
  12. Peter J. Billington & John O. McClain & L. Joseph Thomas, 1983. "Mathematical Programming Approaches to Capacity-Constrained MRP Systems: Review, Formulation and Problem Reduction," Management Science, INFORMS, vol. 29(10), pages 1126-1141, October.
  13. M. Florian & J. K. Lenstra & A. H. G. Rinnooy Kan, 1980. "Deterministic Production Planning: Algorithms and Complexity," Management Science, INFORMS, vol. 26(7), pages 669-679, July.
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