Abstract

AbstractThis paper calls for a change in paradigm in lot sizing and scheduling. Traditionally, a discrete time scale is chosen to model lot sizing and scheduling. As an alternative, the so-called block planning concept is proposed which is based on a continuous representation of time. A mixed-integer linear optimization model is presented that determines the size and the time phasing of the individual production lots in a single-stage production system under the objective of minimizing the makespan. The modelling approach presented here assumes the grouping of product variants into setup families and the production of product variants within a family in a pre-defined sequence. Numerical results demonstrate the practicability of this approach under experimental conditions which reflect typical settings from a leading company in the European beverage industry.

Highlights

  • Dynamic lot sizing and scheduling is a key issue in almost all manufacturing systems, especially, when multiple products with volatile demand are produced on the same production equipment

  • Since in our view conventional lot sizing and scheduling models do not sufficiently reflect the conditions given in industrial production systems we propose an alternate approach, called block planning, for scheduling production orders on a continuous time scale with demand elements being assigned to distinct delivery dates

  • An MILP-based block planning concept has been presented that is intended for practical application in production systems which are characterized by a single bottleneck stage and high demand volatility

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Summary

Introduction

Dynamic lot sizing and scheduling is a key issue in almost all manufacturing systems, especially, when multiple products with volatile demand are produced on the same production equipment. Since the development of the first dynamic lot-sizing models production speed in almost all industries has considerably increased due to rapidly progressing technical advancements. Since in our view conventional lot sizing and scheduling models do not sufficiently reflect the conditions given in industrial production systems we propose an alternate approach, called block planning, for scheduling production orders on a continuous time scale with demand elements being assigned to distinct delivery dates.

Lot size modelling: review and discussion
The block planning principle
MILP model formulation
Setup constraints
Block schedule
Matching production output and demand
Objective function
Variable reduction
Discussion
Numerical investigation
A case-based example from the beverage industry
Experimental design
Implementation
Findings
Numerical results
Conclusions

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