The Capacitated Lot Sizing Problem with Batch Ordering: A MILP and Heuristic Approach

This paper addresses the multi-product, multi-period capacitated lot sizing problem. In particular, this work determines the optimal lot size allowing for shortages (imposed by budget restrictions), but with a penalty cost. The developed models are well suited to the usually rather inflexible production resources found in retail industries. Two models are proposed based on mixed-integer formulations: (i) one that allows shortage and (ii) one that forces fulfilling the demand. Both models are implemented over test instances and a case study of a real industry. By investigating the properties of the obtained solutions, we can determine whether the shortage allowance will benefit the company. The experimental results indicate that, for the test instances, the fact of allowing shortages produces savings up to 17% in comparison with the model without shortages, whereas concerning the current situation of the company, these savings represent 33% of the total costs while preserving the revenue.

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A heuristic approach for a multi-product capacitated lot-sizing problem with pricing

International Journal of Production Research ◽

10.1080/00207540903524482 ◽

2010 ◽

Vol 49 (4) ◽

pp. 1173-1196 ◽

Cited By ~ 24

Author(s):

Rosa G. González-Ramírez ◽

Neale R. Smith ◽

Ronald G. Askin

Keyword(s):

Lot Sizing ◽

Heuristic Approach ◽

Lot Sizing Problem ◽

Capacitated Lot Sizing

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MINIMALISASI BIAYA SIMPAN DAN BIAYA SETUP PADA MULTIPLE PRODUK: SIMULASI DENGAN CAPACITATED LOT SIZING PROBLEM

Jurnal Riset Manajemen dan Bisnis (JRMB) Fakultas Ekonomi UNIAT ◽

10.36226/jrmb.v4i2.260 ◽

2019 ◽

Vol 4 (2) ◽

pp. 205-214

Author(s):

Erika Fatma

Keyword(s):

Production Cost ◽

Lot Sizing ◽

Setup Time ◽

Production Costs ◽

Total Production ◽

Product Cycle ◽

Lot Size ◽

Setup Costs ◽

Lot Sizing Problem ◽

Capacitated Lot Sizing

Lot sizing problem in production planning aims to optimize production costs (processing, setup and holding cost) by fulfilling demand and resources capacity costraint. The Capacitated Lot sizing Problem (CLSP) model aims to balance the setup costs and inventory costs to obtain optimal total costs. The object of this study was a plastic component manufacturing company. This study use CLSP model, considering process costs, holding costs and setup costs, by calculating product cycle and setup time. The constraint of this model is the production time capacity and the storage capacity of the finished product. CLSP can reduce the total production cost by 4.05% and can reduce setup time by 46.75%. Keyword: Lot size, CLSP, Total production cost.

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A variable neighborhood search for multi-family capacitated lot-sizing problem

Electronic Notes in Discrete Mathematics ◽

10.1016/j.endm.2018.03.016 ◽

2018 ◽

Vol 66 ◽

pp. 119-126 ◽

Cited By ~ 1

Author(s):

Jerzy Duda ◽

Adam Stawowy

Keyword(s):

Variable Neighborhood Search ◽

Lot Sizing ◽

Neighborhood Search ◽

Lot Sizing Problem ◽

Capacitated Lot Sizing

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Designing an uncertain bi-objective green leagile capacitated lot sizing problem considering FM/M/C queue system

Journal of Modelling in Management ◽

10.1108/jm2-10-2018-0169 ◽

2021 ◽

Vol ahead-of-print (ahead-of-print) ◽

Author(s):

Masoud Rabbani ◽

Soroush Aghamohamadi Bosjin ◽

Neda Manavizadeh ◽

Hamed Farrokhi-Asl

Keyword(s):

Mathematical Model ◽

Solution Method ◽

Lot Sizing ◽

Test Problems ◽

Content Type ◽

Queue System ◽

Proposed Model ◽

Lot Sizing Problem ◽

Capacitated Lot Sizing ◽

To Receive

Purpose This paper aims to present a novel bi-objective mathematical model for a production-inventory system under uncertainty. Design/methodology/approach This paper addresses agile and lean manufacturing concepts alongside with green production methods to design an integrated capacitated lot sizing problem (CLSP). From a methodological perspective, the problem is solved in three phases. In the first step, an FM/M/C queuing system is used to minimize the number of customers waited to receive their orders. In the second step, an effective approach is applied to deal with the fuzzy bi-objective model and finally, a hybrid metaheuristic algorithm is used to solve the problem. Findings Some numerical test problems and sensitivity analyzes are conducted to measure the efficiency of the proposed model and the solution method. The results validate the model and the performance of the solution method compared to Gams results in small size test problems and prove the superiority of the hybrid algorithm in comparison with the other well-known metaheuristic algorithms in large size test problems. Originality/value This paper presents a novel bi-objective mathematical model for a CLSP under uncertainty. The proposed model is conducted on a practical case and several sensitivity analysis are conducted to assess the behavior of the model. Using a queue system, this problem aims to reduce the items waited in the queue to receive service. Two objective functions are considered to maximize the profit and minimize the negative environmental effects. In this regard, the second objective function aims to reduce the amount of emitted carbon.

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