Integrated lot-sizing and scheduling for just-in-time production of complex assemblies with finite set-ups

This paper addresses the integrated scheduling and lot-sizing problem in a manufacturing environment which produces complex assemblies. Given the duedates of the end items, the objective is to minimize the cumulative lead time of the production schedule (total makespan) and reduce set-up and inventory holding costs. A JIT production strategy is adopted in which production is scheduled as late as possible (to minimize WIP costs), but without backlogging end items. The integrated scheduling and lot-sizing problem within such an environment has been formulated and is NP hard. An efficient heuristic is developed that schedules operations by exploiting the critical path of a network and iteratively groups orders to determine lot-sizes that minimize the makespan as well as set-up and holding costs. The performance of the proposed heuristic is evaluated and numerical results are presented comparing the savings achieved in makespan and cost over a lot-for-lot production strategy, and scheduling using an existing ...

[1]  Uday S. Karmarkar,et al.  Lot Sizes, Lead Times and In-Process Inventories , 1987 .

[2]  John J. DeMatteis.  An Economic Lot-Sizing Technique I: The Part-Period Algorithm , 1968, IBM Syst. J..

[3]  J. Carlier,et al.  An algorithm for solving the job-shop problem , 1989 .

[4]  Rakesh Nagi,et al.  'Just-in-time' production of large assemblies , 1996 .

[5]  K. Preston White,et al.  A recent survey of production scheduling , 1988, IEEE Trans. Syst. Man Cybern..

[6]  W. Zangwill.  A Backlogging Model and a Multi-Echelon Model of a Dynamic Economic Lot Size Production System---A Network Approach , 1969 .

[7]  Moshe Dror,et al.  Mathematical programming formulations for machine scheduling: A survey , 1991 .

[8]  U. Karmarkar,et al.  Computationally Efficient Optimal Solutions to the Lot-Sizing Problem in Multistage Assembly Systems , 1984 .

[9]  J. K. Lenstra,et al.  Computational complexity of discrete optimization problems , 1977 .

[10]  W. Zangwill.  Minimum Concave Cost Flows in Certain Networks , 1968 .

[11]  Horst Tempelmeier,et al.  A heuristic for dynamic multi-item multi-level capacitated lotsizing for general product structures , 1994 .

[12]  M. Schniederjans.  Topics in just-in-time management , 1992 .

[13]  S. Reiter.  A System for Managing Job-Shop Production , 1966 .

[14]  K. R. Baker,et al.  An Algorithm for the Dynamic Lot-Size Problem with Time-Varying Production Capacity Constraints , 1978 .

[15]  L. J. Thomas,et al.  Lot Sizing and Sequencing for N Products on One Facility , 1977 .

[16]  H. Albert Napier,et al.  Optimal Multi-Level Lot Sizing for Requirements Planning Systems , 1980 .

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

[18]  M. D. Wilkinson,et al.  Management science , 1989, British Dental Journal.

[19]  Egon Balas,et al.  The Shifting Bottleneck Procedure for Job Shop Scheduling , 1988 .

[20]  Jiyin Liu,et al.  Addressing the gap in scheduling research: a review of optimization and heuristic methods in production scheduling , 1993 .

[21]  E. Silver,et al.  A heuristic solution procedure for the multi-item, single-level, limited capacity, lot-sizing problem , 1981 .

[22]  Mark A. McKnew,et al.  A Technique for Order Placement and Sizing , 1990 .

[23]  Mark A. McKnew,et al.  An Improved Heuristic for Multilevel Lot Sizing in Material Requirements Planning , 1991 .

[24]  Jeffrey R. Barker,et al.  Scheduling the General Job-Shop , 1985 .

[25]  M. Lambrecht,et al.  Heuristic Procedures for the Single Operation, Multi-Item Loading Problem , 1979 .

[26]  Said Ashour,et al.  A branch-and-bound approach to the job-shop scheduling problem , 1973 .

[27]  S. S. Panwalkar,et al.  A Survey of Scheduling Rules , 1977, Oper. Res..

[28]  Chien-Hua M. Lin,et al.  An effective algorithm for the capacitated single item lot size problem , 1994 .

[29]  Ömer Kirca,et al.  A new heuristic approach for the multi-item dynamic lot sizing problem , 1994 .

[30]  Stéphane Dauzère-Pérès,et al.  Integration of lotsizing and scheduling decisions in a job-shop , 1994 .

[31]  Joseph D. Blackburn,et al.  Improved heuristics for multistage requirements planning systems , 1982 .

[32]  Said Ashour.  A DECOMPOSITION APPROACH FOR THE MACHINE SCHEDULING PROBLEM , 1967 .

[33]  Anthony J. Zahorik,et al.  Network Programming Models for Production Scheduling in Multi-Stage, Multi-Item Capacitated Systems , 1984 .

[34]  John Miltenburg,et al.  Scheduling mixed-model multi-level just-in-time production systems , 1989 .

[35]  M. H. Wagner,et al.  Dynamic Lot Size Models for Multi-Stage Assembly Systems , 1973 .

[36]  Willard I. Zangwill,et al.  A Deterministic Multiproduct, Multi-Facility Production and Inventory Model , 1966, Oper. Res..

[37]  John O. McClain,et al.  Mathematical Programming Approaches to Capacity-Constrained MRP Systems: Review, Formulation and Problem Reduction , 1983 .

[38]  J. Miltenburg,et al.  Algorithms for Scheduling Multi-Level Just-In-Time Production Systems , 1992 .