The Production of Several Items in a Single Facility with Linearly Changing Demand Rates

In this paper we extend the ELSP model to allow for linearly changing demand rates over a fixed planning horizon. This extension of the ELSP research provides a model that can be used in coordinating the production and marketing planning activities in a firm. The model allows the user to evaluate the impact of changes in product demand on production costs and customer service. We solve the model using a standard nonlinear programming package (MINOS) and show through examples based on actual production data how the model can be used to support coordinated production and marketing planning.

[1]  S. Elmaghraby.  The Economic Lot Scheduling Problem (ELSP): Review and Extensions , 1978 .

[2]  Edmund W. Schuster,et al.  Raw Material Management at Welch's, Inc , 1998, Interfaces.

[3]  Vincent A. Mabert,et al.  Cyclical schedules for capacitated lot sizing with dynamic demands , 1991 .

[4]  Gerald G. Brown,et al.  The Kellogg Company Optimizes Production, Inventory, and Distribution , 2001, Interfaces.

[5]  C. Yano,et al.  The strategic use of capacity slack in the economic lot scheduling problem with random demand , 1994 .

[6]  KARLA E. BOURLAND,et al.  A comparison of solution approaches for the fixed-sequence economic lot scheduling problem , 1997 .

[7]  G. Gallego,et al.  How to avoid stockouts when producing several items on a single facility? What to do if you can't? , 1996, Computers & Operations Research.

[8]  Graham K. Rand,et al.  Decision Systems for Inventory Management and Production Planning , 1979 .

[9]  G. Gallego,et al.  The economic lot scheduling problem with finite backorder costs , 1992 .

[10]  Robin O. Roundy,et al.  The Extended Economic Lot Scheduling Problem , 1988 .

[11]  G. Gallego.  Scheduling the production of several items with random demands in a single facility , 1990 .

[12]  Elmer L. Dougherty,et al.  Optimizing SANTOS's Gas Production and Processing Operations in Central Australia Using the Decomposition Method , 1987 .

[13]  Bret J. Wagner,et al.  A search heuristic for the sequence-dependent economic lot scheduling problem , 2002, Eur. J. Oper. Res..