Solving the capacitated lot-sizing problem with backorder consideration
- PDF / 123,054 Bytes
- 8 Pages / 595 x 842 pts (A4) Page_size
- 26 Downloads / 195 Views
#2001 Operational Research Society Ltd. All rights reserved. 0160-5682/01 $15.00 www.palgrave-journals.com/jors
Solving the capacitated lot-sizing problem with backorder consideration CH Cheng1*, MS Madan2, Y Gupta3 and S So4 1
The Chinese University of Hong Kong, Hong Kong; 2University of Wisconsin at Whitewater, WI, USA; 3University of Washington at Seattle, WA, USA; and 4Hong Kong Hospital Authority, Hong Kong
In this research, we formulate and solve a type of the capacitated lot-sizing problem. We present a general model for the lot-sizing problem with backorder options, that can take into consideration various types of production capacities such as regular time, overtime and subcontracting. The objective is to determine lot sizes that will minimize the sum of setup costs, holding cost, backorder cost, regular time production costs, and overtime production costs, subject to resource constraints. Most existing formulations for the problem consider the special case of the problem where a single source of production capacity is considered. However, allowing for the use of alternate capacities such as overtime is quite common in many manufacturing settings. Hence, we provide a formulation that includes consideration of multiple sources of production capacity. We develop a heuristic based on the special structure of fixed charge transportation problem. The performance of our algorithm is evaluated by comparing the heuristic solution value to lower bound value. Extensive computational results are presented. Keywords: capacitated lot-sizing; single level constrained resource; backorder
Introduction The capacitated lot-sizing (CLS) problem concerns the planning of production of multiple products in multiple periods to satisfy demand requirements without violating capacity constraints. In this research, we develop a model for the capacitated lot-sizing problem with backordering options (CLSB). The model is flexible enough to consider major decision variables such as setups, production levels, inventory levels, overtime, and backorders. The problem consists of scheduling J products over T time periods such that the demand is satisfied using alternative capacities such as regular time and overtime. The objective is to minimize the total cost including setup cost, production cost and inventory carrying cost. CLSB problems such as the one discussed in this research apply in situations where, if any portion of demand cannot be satisfied in a given period, the demand is backordered and filled in future periods. Backorder situations occur at the wholesaleÿretail link of distribution systems of standardized make-to-stock products. The general capacitated lot-sizing problem has received significant attention in the literature. Maes and Van Wassenhove,1 and Millar and Yang2 provide a comprehensive review of research on CLSP. Capacitated lot-sizing with backorder options are commonly allowed in many *Correspondence: CH Cheng, Department of Systems Engineering and Engineering Management, The Chinese University of Hong Kong, Shati
Data Loading...
