• Journal of the Korean Operations Research and Management Science Society
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• v.40 no.3
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• pp.23-38
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• 2015

In this paper, we evaluate the strength of three families of cutting planes for a lot-sizing problem. Lot-sizing problem is very basic MIP model for production planning and many strong valid inequalities have been developed for a variety of relaxations in the literature. To use three families of cutting planes in Branch-and-Cut framework, we develop separation algorithms for each cut and implement them in CPLEX. Then, we perform computational study to compare the effectiveness of three cuts for randomly generated instances of the lot-sizing problem.

• Journal of Korean Institute of Industrial Engineers
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• v.32 no.2
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• pp.98-103
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• 2006

In this research, the single machine capacitated lot-sizing and scheduling problem with sequence- dependent setup costs and setup times (CLSPSD) is considered. This problem is the extension of capacitated lot-sizing and scheduling problem (CLSP) with an additional assumption on sequence-dependent setup costs and setup times. The objective of the problem is minimizing the sum of production costs, inventory holding costs and setup costs satisfying customers' demands. It is known that the CLSPSD is NP-hard. In this paper, the MIP formulation is presented. To handle the problem more efficiently, a conceptual model is suggested, and one of the well-known meta-heuristics, the simulated annealing approach is applied. To illustrate the performance of this approach, various instances are tested and the results of this algorithm are compared with those of the CLPEX. Computational results show that this approach generates optimal or nearly optimal solutions.

• Journal of Korean Institute of Industrial Engineers
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• v.31 no.3
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• pp.194-200
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• 2005

A stochastic dynamic lot sizing problem for multi-item is suggested in the case that the distribution of the cumulative demand is known over finite planning horizons and all unsatisfied demand is fully backlogged. Each item is produced simultaneously at a variable ratio of input resources employed whenever setup is incurred. A dynamic programming algorithm is proposed to find the optimal production policy, which resembles the Wagner-Whitin algorithm for the deterministic case problem but with some additional feasibility constraints.

• Management Science and Financial Engineering
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• v.14 no.2
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• pp.13-23
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• 2008

The pricing/lot-sizing problem of determining the robust optimal order quantity and selling price is discussed. The uncertainty of parameters characterized by an ellipsoid is explicitly incorporated into the problem. An approximation scheme is proposed to transform the problem into a geometric program, which can be efficiently and reliably solved using interior-point methods.

• Proceedings of the Korean Operations and Management Science Society Conference
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• 2008.10a
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• pp.290-296
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• 2008

This paper considers a two-stage dynamic lot-sizing problem constrained by a supplier's production capacity. We derive an improved O($T^6$) algorithm over the O($T^7$) algorithm in van Hoesel et al. (2005).

• Journal of Korean Institute of Industrial Engineers
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• v.36 no.1
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• pp.7-12
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• 2010

This paper considers a dynamic lot-sizing problem with backlogging under a minimum replenishment policy. For general concave production costs, we propose an O($T^5$) dynamic programming algorithm. If speculative motive is not allowed, in this case, a more efficient O($T^4$) algorithm is developed.

• Journal of the Korea Academia-Industrial cooperation Society
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• v.13 no.7
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• pp.2955-2963
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• 2012

This study presents a column generation approach for multiple product dynamic lot-sizing problem. The basic idea of this approach is to have a master problem which allocates limited capacity among n different products and a sub-problem that performs the optimal lot sizing for each product subject to capacity allocation given by the master problem. In the sub-problem, we develop M/G/1 queuing model based clearing function which captures nonlinear relationship between the lot size, the work in process level and the throughput. A large number of test problems are randomly generated to evaluate the performance. Computational results show that the proposed model can find better solutions within reasonable CPU times.

• IE interfaces
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• v.13 no.3
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• pp.378-387
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• 2000

As the globalization of manufacturing companies continues, the scope of dependence between these companies and distributors, and other suppliers are growing very rapidly since no one company manufactures or distributes the whole product by themselves. And, the need to increase the efficiency of the whole supply chain is increasing. This paper deals with a multi-plant lot-sizing problem(MPLSP) which happens in a decentralized manufacturing system of a supply chain. In this study, we assume that the whole supply chain is driven by a single source of independent demand and many levels of dependent demands among manufacturing systems in the supply chain. We consider setup cost, transportation cost and time, and inventory holding cost as a decision factor in the MPLSP. The MPLSP is decomposed into two sub-problems: a planning problem of the whole supply chain and a lot-sizing problem of each manufacturing system. The supply chain planning problem becomes a pure linear programming problem and a Generalized Goal Decomposition method is used to solve the problem. Its result is used as a goal of the lot-sizing problem. The lot-sizing problem is solved using the CPLEX package, and then the coefficients of the planning problem are updated reflecting the lot-sizing solution. This procedure is repeated until termination criteria are met. The whole solution process is similar to Lagrangian relaxation method in the sense that the solutions are approaching the optimum in a recursive manner. Through experiments, the proposed closed-loop hierarchical planning and traditional hierarchical planning are compared to optimal solution, and it is shown that the proposed method is a very viable alternative for solving production planning problems of decentralized manufacturing systems and in other areas.

• Journal of the Korea Academia-Industrial cooperation Society
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• v.7 no.1
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• pp.89-95
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• 2006

Planning distributed manufacturing logistics is one of main issues in supply chain management. This paper proposes a hybrid heuristic approach for the Multi-Level, multi-item Capacitated Lot Sizing Problem (MLCLSP) in supply chain network. MLCLSP corresponds to a mixed integer programming (MIP) problem. With integer variable solutions determined by heuristic search, this MIP problem becomes linear program (LP). By repeatedly solving the relaxed MIP problems with a heuristic search method in a hybrid manner, this proposed approach allocates finite manufacturing resources fur each distributed facilities and generates feasible production plans. Meta heuristic search algorithm is presented to solve the MIP problems. The experimental test evaluates the computational performance under a variety of problem scenarios.

• Journal of Korean Society for Quality Management
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• v.18 no.1
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• pp.65-76
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• 1990

A lot-sizing model for multi-stage MRP systems is proposed, in which known demands must be satisfied. In this model, an approach with considerations of initial inventory and limited production capacity is involved. Most of the studies on the lot-sizing techniques for multi-stage material requirement planning systems have been focused upon two basic approaches. One approach is to develope an algorithm yielding an optimal solution. Due to the computational complexity and sensitivity of the optimal solution to the problem of lot sizing, heuristic approaches are often employed. In this paper, the heuristic approach is used by sequential application of a single-stage algorithm with a set of modified cost by the concept of multi-echelon costs. The proposed method is compared with an lot-sizing method(Florian-Klein Model) to prove its effectiveness by numerical examples.