Integration of energy aspects into the economic lot scheduling problem

Abstract

Due to the role the manufacturing sector plays in the depletion of resources and the generation of greenhouse gas emissions, the consumption of energy has more and more often made it onto research agendas in the area of production planning over the last decade. The work at hand integrates energy aspects into the well-known Economic Lot Scheduling Problem (ELSP) by taking account of the cost arising from the product-dependent energy usage of the production facility during machine startups and shutdowns as well as during tool change, idle, and production phases. To determine a cyclic production schedule that minimizes the sum of tool change, inventory holding, and energy usage costs, we use the Common-Cycle-Approach of Hanssmann (1962) and the Basic-Period-Approach of Haessler and Hogue (1976) and adjust them accordingly. Using the data sets of Bomberger and Eilon, we show that considering energy cost in the ELSP affects the resulting cyclic production schedule and significantly reduces the company's energy cost.