In this paper, we study a Capacitated Lot Sizing Problem with Stochastic Setup Times and Overtime (CLSP-SSTO). We describe a mathematical model that considers both regular costs (including production, setup and inventory holding costs) and expected overtime costs (related to the excess usage of capacity). The CLSP-SSTO is formulated as a two-stage stochastic programming problem. A procedure is proposed to exactly compute the expected overtime for a given setup and production plan when the setup times follow a Gamma distribution. A sample average approximation procedure is applied to obtain upper bounds and a statistical lower bound. This is then used to benchmark the performance of two additional heuristics. A first heuristic is based on changing the capacity in the deterministic counterpart, while the second heuristic artificially modifies the setup time. We conduct our computational experiments on well-known problem instances and provide comprehensive analyses to evaluate the performance of each heuristic.

A capacitated lot sizing problem with stochastic setup times and overtime

Jabali, Ola;
2019-01-01

Abstract

In this paper, we study a Capacitated Lot Sizing Problem with Stochastic Setup Times and Overtime (CLSP-SSTO). We describe a mathematical model that considers both regular costs (including production, setup and inventory holding costs) and expected overtime costs (related to the excess usage of capacity). The CLSP-SSTO is formulated as a two-stage stochastic programming problem. A procedure is proposed to exactly compute the expected overtime for a given setup and production plan when the setup times follow a Gamma distribution. A sample average approximation procedure is applied to obtain upper bounds and a statistical lower bound. This is then used to benchmark the performance of two additional heuristics. A first heuristic is based on changing the capacity in the deterministic counterpart, while the second heuristic artificially modifies the setup time. We conduct our computational experiments on well-known problem instances and provide comprehensive analyses to evaluate the performance of each heuristic.
2019
Heuristics; Lot sizing; Production; Sample average approximation; Stochastic setup times; Computer Science (all); Modeling and Simulation; Management Science and Operations Research; Information Systems and Management
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11311/1087460
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