Lead time considerations for the multi-level capacitated lot-sizing problem

Christian Almeder*, Diego Klabjan, Renate Traxler, Bernardo Almada-Lobo

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

28 Scopus citations

Abstract

The classical multi-level capacitated lot-sizing problem formulation is often not suitable to correctly capture resource requirements and precedence relations. Depending on lead time assumptions, either the model provides infeasible production plans or plans with costly needless inventory. We tackle this issue by explicitly modeling these two aspects and the synchronization of batches of products in the multi-level lot-sizing and scheduling formulation. Two models are presented; one considering batch production and the other one allowing lot-streaming. Comparisons with traditional models demonstrate the capability of the new approach in delivering more realistic results. The generated production plans are always feasible and cost savings of 30-40 percent compared to classical models are observed.

Original languageEnglish (US)
Pages (from-to)727-738
Number of pages12
JournalEuropean Journal of Operational Research
Volume241
Issue number3
DOIs
StatePublished - Mar 16 2015

Keywords

  • Lot-sizing
  • Mixed integer programming
  • Production
  • Scheduling
  • Synchronization

ASJC Scopus subject areas

  • Computer Science(all)
  • Modeling and Simulation
  • Management Science and Operations Research
  • Information Systems and Management

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