A Problem-Specific and Effective Metaheuristic for Flexibility Design

Matching uncertain demand with capacities is notoriously hard. Operations managers can use mix-flexible resources to shift excess demands to unused capacities. To find the optimal configuration of a mix-flexible production network, a flexibility design problem (FDP) is solved. Existing literature on FDPs provides qualitative structural insights, but work on solution methods is rare. We contribute the first metaheuristic which integrates these structural insights and is specifically tailored to solve FDPs. Our genetic algorithm is compared to commercial solvers on instances of up to 15 demand types, resources, and 500 demand scenarios. Experimental evidence shows that in the realistic case of flexible optimal configurations, it dominates the comparison methods regarding runtime and solution quality.

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