IDEAS home Printed from https://ideas.repec.org/p/han/dpaper/dp-708.html
   My bibliography  Save this paper

A framework for multi-objective stochastic lot sizing with multiple decision stages

Author

Listed:
  • Friese, Fabian
  • Helber, Stefan

Abstract

In stochastic lot sizing subject to dynamic and random demand, the minimization of operational costs is not the only conceivable objective. Minimizing the tardiness in customer demand satisfaction is no less important. Furthermore, the decision maker is interested in production plan stability. Therefore, we consider those three objectives simultaneously and propose a multi-objective model formulation and decision-making framework of the stochastic capacitated lot sizing problem (MOSCLSP). Demand is modeled via the Martingale Model of Forecast Evolution to allow gradual adaptations of the demand forecasts due to sequential market observations. We propose an interactive multi-objective optimization algorithm for solving the MO-SCLSP, that systematically takes prior demand realization information into account. In multiple decision stages, periodic re-optimizations are carried out, allowing to adjust the production plan to the actual demand realizations. In each decision stage, methods from multi-objective optimization are applied to derive a set of Pareto-optimal solutions. These Pareto-optimal solutions outline the attainable objective space, thus supporting the decision maker in taking an informed and economically profound position between prioritizing low operational costs, high delivery reliability and low production plan nervousness.

Suggested Citation

  • Friese, Fabian & Helber, Stefan, 2023. "A framework for multi-objective stochastic lot sizing with multiple decision stages," Hannover Economic Papers (HEP) dp-708, Leibniz Universität Hannover, Wirtschaftswissenschaftliche Fakultät.
    • Handle: RePEc:han:dpaper:dp-708
    as

    Download full text from publisher

    File URL: https://diskussionspapiere.wiwi.uni-hannover.de/pdf_bib/dp-708.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Amir Hossein Azadnia & Muhamad Zameri Mat Saman & Kuan Yew Wong, 2015. "Sustainable supplier selection and order lot-sizing: an integrated multi-objective decision-making process," International Journal of Production Research, Taylor & Francis Journals, vol. 53(2), pages 383-408, January.
    2. Karimi, B. & Fatemi Ghomi, S. M. T. & Wilson, J. M., 2003. "The capacitated lot sizing problem: a review of models and algorithms," Omega, Elsevier, vol. 31(5), pages 365-378, October.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Melega, Gislaine Mara & de Araujo, Silvio Alexandre & Jans, Raf, 2018. "Classification and literature review of integrated lot-sizing and cutting stock problems," European Journal of Operational Research, Elsevier, vol. 271(1), pages 1-19.
    2. Andreas Schiessl & Richard Müller & Rebekka Volk & Konrad Zimmer & Patrick Breun & Frank Schultmann, 2020. "Integrating site-specific environmental impact assessment in supplier selection: exemplary application to steel procurement," Journal of Business Economics, Springer, vol. 90(9), pages 1409-1457, November.
    3. Abdullah Yıldızbaşı & Cihat Öztürk & Deniz Efendioğlu & Serol Bulkan, 2021. "Assessing the social sustainable supply chain indicators using an integrated fuzzy multi-criteria decision-making methods: a case study of Turkey," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(3), pages 4285-4320, March.
    4. Ali Saeed Almuflih & Janpriy Sharma & Mohit Tyagi & Arvind Bhardwaj & Mohamed Rafik Noor Mohamed Qureshi & Nawaf Khan, 2022. "Leveraging the Dynamics of Food Supply Chains towards Avenues of Sustainability," Sustainability, MDPI, vol. 14(12), pages 1-15, June.
    5. Simon Emde, 2017. "Scheduling the replenishment of just-in-time supermarkets in assembly plants," OR Spectrum: Quantitative Approaches in Management, Springer;Gesellschaft für Operations Research e.V., vol. 39(1), pages 321-345, January.
    6. Nadjib Brahimi & Stéphane Dauzère-Pérès & Najib M. Najid, 2006. "Capacitated Multi-Item Lot-Sizing Problems with Time Windows," Operations Research, INFORMS, vol. 54(5), pages 951-967, October.
    7. Schreiber, Lucas, 2019. "Optimization and simulation for sustainable supply chain design," Chapters from the Proceedings of the Hamburg International Conference of Logistics (HICL), in: Jahn, Carlos & Kersten, Wolfgang & Ringle, Christian M. (ed.), Digital Transformation in Maritime and City Logistics: Smart Solutions for Logistics. Proceedings of the Hamburg International Conference of Logistics, volume 28, pages 271-298, Hamburg University of Technology (TUHH), Institute of Business Logistics and General Management.
    8. Boonmee, Atiwat & Sethanan, Kanchana, 2016. "A GLNPSO for multi-level capacitated lot-sizing and scheduling problem in the poultry industry," European Journal of Operational Research, Elsevier, vol. 250(2), pages 652-665.
    9. Alireza Arshadi Khamseh, 2021. "A Time-Dependent Sustainable–Flexible Supplier Selection Considering Uncertainty and TODIM Method in Iranian Dairy Industries," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 22(2), pages 113-126, June.
    10. Luis A. Guardiola & Ana Meca & Justo Puerto, 2022. "The effect of consolidated periods in heterogeneous lot-sizing games," TOP: An Official Journal of the Spanish Society of Statistics and Operations Research, Springer;Sociedad de Estadística e Investigación Operativa, vol. 30(2), pages 380-404, July.
    11. Terzi, Mourad & Ouazene, Yassine & Yalaoui, Alice & Yalaoui, Farouk, 2023. "Lot-sizing and pricing decisions under attraction demand models and multi-channel environment: New efficient formulations," Operations Research Perspectives, Elsevier, vol. 10(C).
    12. Esra Boz & Sinan Çizmecioğlu & Ahmet Çalık, 2022. "A Novel MDCM Approach for Sustainable Supplier Selection in Healthcare System in the Era of Logistics 4.0," Sustainability, MDPI, vol. 14(21), pages 1-19, October.
    13. Kovcs, Andrs & Brown, Kenneth N. & Tarim, S. Armagan, 2009. "An efficient MIP model for the capacitated lot-sizing and scheduling problem with sequence-dependent setups," International Journal of Production Economics, Elsevier, vol. 118(1), pages 282-291, March.
    14. G. Rius-Sorolla & J. Maheut & S. Estellés-Miguel & J. P. García-Sabater, 2021. "Operations planning test bed under rolling horizons, multiproduct, multiechelon, multiprocess for capacitated production planning modelling with strokes," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 29(4), pages 1289-1315, December.
    15. LAMAS, ALEJANDRO & CHEVALIER, Philippe, 2013. "Jumping the hurdles for collaboration: fairness in operations pooling in the absence of transfer payments," LIDAM Discussion Papers CORE 2013073, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    16. Fink, Jiří & Hurink, Johann L., 2015. "Minimizing costs is easier than minimizing peaks when supplying the heat demand of a group of houses," European Journal of Operational Research, Elsevier, vol. 242(2), pages 644-650.
    17. Alikhani, Reza & Torabi, S. Ali & Altay, Nezih, 2019. "Strategic supplier selection under sustainability and risk criteria," International Journal of Production Economics, Elsevier, vol. 208(C), pages 69-82.
    18. Hartmut Stadtler & Malte Meistering, 2019. "Model formulations for the capacitated lot-sizing problem with service-level constraints," OR Spectrum: Quantitative Approaches in Management, Springer;Gesellschaft für Operations Research e.V., vol. 41(4), pages 1025-1056, December.
    19. Wolter, Anja & Helber, Stefan, 2013. "Simultaneous Production and Maintenance Planning for a Single Capacitated Resource facing both a Dynamic Demand and Intensive Wear and Tear," Hannover Economic Papers (HEP) dp-522, Leibniz Universität Hannover, Wirtschaftswissenschaftliche Fakultät.
    20. Robinson, Powell & Narayanan, Arunachalam & Sahin, Funda, 2009. "Coordinated deterministic dynamic demand lot-sizing problem: A review of models and algorithms," Omega, Elsevier, vol. 37(1), pages 3-15, February.

    More about this item

    Keywords

    Multi-objective lot sizing; Stochastic lot sizing; Multi-objective optimization; Multiple decision stages; System nervousness; Service levels;
    All these keywords.

    JEL classification:

    • C44 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Operations Research; Statistical Decision Theory
    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:han:dpaper:dp-708. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Heidrich, Christian (email available below). General contact details of provider: https://edirc.repec.org/data/fwhande.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.