• IE interfaces
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• v.13 no.2
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• pp.217-224
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• 2000

This paper analyzes the effects of setup cost reduction in a dynamic lot-sizing model for a single-facility multi-product problem. In the model, demands for each product are known, no backlogging is allowed, and a single resource is employed. Also, setup cost is defined as a function of capital expenditure to invest in setup cost reduction. Furthermore, in each production period the facility (or plant) produces many products, each representing a fixed part of the involved production activity (or input resource quantity). In this paper, the structure of the optimal solution is characterized and an efficient algorithm is proposed for simultaneously determining the optimal lot size with reduced setup cost and the optimal investment in setup cost reduction. Also, the proposed algorithm is illustrated by a numerical example with a linear and an exponential setup reduction functions.

• Journal of Korean Institute of Industrial Engineers
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• v.40 no.4
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• pp.424-427
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• 2014

In this paper, we consider a production system in which the items are produced by batch. For a production planning of the system, we formulate a lot-sizing problem in which each production should be a multiple of a given unit batch and backlogging is allowed. We propose an optimal dynamic programming algorithm for the plan whose complexity is $O(T^2)$ where T is the maximum number of periods in a plan.

• Proceedings of the Korean Operations and Management Science Society Conference
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• 1996.04a
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• pp.289-289
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• 1996

• Journal of Korean Institute of Industrial Engineers
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• v.22 no.2
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• pp.231-245
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• 1996

Semiconductor manufacturing line includes several batch processes which are to be controlled effectively to enhance the productivity of the line. The key problem in batch processes is a dynamic batch sizing problem which determines number of lots processed simultaneously in a single botch. The batch sizing problem in semiconductor manufacturing has to consider delay of lots, setup cost of the process, machine utilization and so on. However, an optimal solution cannot be attainable due to dynamic arrival pattern of lots, and difficulties in forecasting future arrival times of lots of the process. This paper proposes an efficient batch sizing heuristic, which considers delay cost, setup cost, and effect of the forecast errors in determining the botch size dynamically. Extensive numerical experiments through simulation are carried out to investigate the effectiveness of the proposed heuristic in four key performance criteria: average delay, variance of delay, overage lot size and total cost. The results show that the proposed heuristic works effectively and efficiently.

• Proceedings of the Korean Operations and Management Science Society Conference
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• 2007.11a
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• pp.7-11
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• 2007

This paper considers a shipment planning of products from manufacturers to a third-party warehouse for demands with production time windows where a demand must be replenished in its time window. The underling lot-sizing model also assumes cargo delivery cost in each inbound replenishment to the warehouse. For this model, an optimal O($nT^4$) is presented where n is the number of demands and T is the length of the planning horizon.

• Korean Management Science Review
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• v.5 no.1
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• pp.56-70
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• 1988

In this study, We reviewed the solution methods (for the heuristic and optimization method) for the single-item dynamic lot-sizing problem, and improved the efficiency (speed and optimality) of the conventional heuristic method by utilizing the inventory decomposition property. The iventory decomposition property decomposes the given original problem into several independent subproblems without violating the optimality conditions. Then we solve each decomposed subproblems by using the conventional heuristics such as LTC, LUC, Silver-Meal etc. For testing the efficiency of the proposed decomposition method, we adopted the data sets given in Kaimann, Berry and Silver-Meal. The computational results show that the suggested problem solving framework results in some promising effects on the computation time and the degree of optimality.

• Journal of Korean Society of Industrial and Systems Engineering
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• v.30 no.4
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• pp.127-132
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• 2007

본 논문에서는 운송비용과 재고유지비용의 합을 최소화하는 것을 목적으로 유한 계획기간 동안의 수요를 충족시키는 동적 랏사이징 문제를 다룬다. 운송비용을 고려하는 기존의 랏사이징 모형들과는 달리 운송 트럭의 대수에 따라 계단형으로 운송비용이 증가하는 경우를 다루고 있다. 이 문제를 선형정수모형으로 모델링하며 그리디 방식의 휴리스틱을 제안한다. 제안된 휴리스틱의 성능을 평가하기 위해 계산실험을 수행하며, 그 결과 매우 짧은 시간 안에 최적해에 가까운 해를 찾을 수 있음을 보여준다.

• Journal of Korean Institute of Industrial Engineers
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• v.41 no.3
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• pp.233-242
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• 2015

This paper analyzes a multi-product inbound lot-sizing and outbound dispatching problem with multi-vehicle types in a third-party logistics distribution center. The product must be delivered to the customers within the delivery time window and backlogging is not allowed. Replenishing orders are shipped by several types of vehicles with two types of the freight costs, i.e., uniform and decreasing, are considered. The objective of this study is to determine the lot-size and dispatching schedules to minimize the total cost with the sum of inbound and outbound transportation and inventory costs over the entire time horizon. In this study, we mathematically derive a mixed-integer programming model and propose a genetic algorithm (GA1) based on a local search heuristic algorithm to solve large-scale problems. In addition, we suggest a new genetic algorithm (GA2) with an adjusting algorithm to improve the performance of GA1. The basic mechanism of the GA2 is to provide an unidirectional partial move of products to available containers in the previous period. Finally, we analyze the results of GA1 and GA2 by evaluate the relative performance using the gap between the objective values of CPLEX and the each algorithm.

• Proceedings of the Korean Operations and Management Science Society Conference
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• 2000.04a
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• pp.61-64
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• 2000

This paper analyzes a dynamic lot-sizing problem, in which the order size of multiple products and a single container type are simultaneously considered. In the problem, each order (product) placed in a period is immediately shipped immediately by containers in the period and the total freight cost is proportional to the number of each container type employed. Also, it is assumed that backlogging is not allowed. The objective of this study is to determine the lot-sizes and the shipping policy that minimizes the total costs, which consist of ordering costs, inventory holding costs, and freight costs. Because this problem is NP-hard, we propose a heuristic algorithm with an adjustment mechanism, based on the optimal solution properties. The computational results from a set of simulation experiment are also presented.

• Journal of the Korean Operations Research and Management Science Society
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• v.24 no.4
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• pp.13-26
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• 1999

When we try to design a production planning system for a manufacturing company, it is a time consuming task to analyze various planning activities and identify inter-relationship among a lot of decisions made for the production planning. Most of the research efforts have been concentrated to well-organized independent decision-making problems that may usually be identified only after analyzing the characteristics of the decision-making process as a whole. In this paper, a methodology is suggested to characterize the whole process of the production planning for a manufacturing company and reduce the complexity of decision-making problems. The methodology is based on an experience of developing a production planning software for an automobile component manufacturer in korea. First, it is explained how to identify and represent the dependency among various decision-making variables. And a methodology is proposed to analyze the identified dependency among decision variables and identify decision-making process. Lastly, a practical example is provided to illustrate the analysis procedure in this paper.