A Simulation-Based Methodology for Lot-Size Optimization

Abstract

In the process of lot size optimization, various factors such as machine capability and parts assembly lead time need to be considered. Within small batch and multi-items production environment, kitting parts entering to assembly systems in time may valid shorten product manufacturing period, and reduce the quantity of work-in-process (WIP). This paper built up a mathematical model with the objective function of reducing set up costs, shortening cycle of part production and reducing WIP and with constraints of machine capabilities, part process planning and kitting requirement. An object-oriented simulation model is established to control the behavior of logistics objects to meet the target functions through rules aggregation and constraints at the control points, resulting in an optimal production result.