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Short-term management of lot production

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  • Kimms, Alf

Abstract

This contribution presents an efficient solution method for solving the major short-term planning problems which occur, if lot production has to be managed. In our focus are the two most important aspects, i.e. lot sizing and scheduling. Since both problems heavily interact, we propose an approach which solves these problems simultaneously. This is in contrast to what traditional Manufacturing Resource Planning (MRP II) logic suggests. But, since we pay special attention on complex product structures and several scarce resources, our approach dominates MRP II. A computational study reveals that suboptimal results within the 6.6% scope from the optimum are obtained within less than half a second for small instances.

Suggested Citation

  • Kimms, Alf, 1998. "Short-term management of lot production," Manuskripte aus den Instituten für Betriebswirtschaftslehre der Universität Kiel 480, Christian-Albrechts-Universität zu Kiel, Institut für Betriebswirtschaftslehre.
    • Handle: RePEc:zbw:cauman:480
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    References listed on IDEAS

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    1. Panayotis Afentakis & Bezalel Gavish, 1986. "Optimal Lot-Sizing Algorithms for Complex Product Structures," Operations Research, INFORMS, vol. 34(2), pages 237-249, April.
    2. Panayotis Afentakis & Bezalel Gavish & Uday Karmarkar, 1984. "Computationally Efficient Optimal Solutions to the Lot-Sizing Problem in Multistage Assembly Systems," Management Science, INFORMS, vol. 30(2), pages 222-239, February.
    3. Gabriel R. Bitran & Hirofumi Matsuo, 1986. "Approximation Formulations for the Single-Product Capacitated Lot Size Problem," Operations Research, INFORMS, vol. 34(1), pages 63-74, February.
    4. Alok Aggarwal & James K. Park, 1993. "Improved Algorithms for Economic Lot Size Problems," Operations Research, INFORMS, vol. 41(3), pages 549-571, June.
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