Relax-and-fix heuristics applied to a real-world lot sizing and scheduling problem in the personal care consumer goods industry

DOI10.1007/S43069-023-00230-7MaRDI QIDQ6168345zbMATH OpenFDO

Authors Kennedy A. G. Araújo, E. G. Birgin, Márcio S. Kawamura, Débora P. Ronconi

Publication date 8 August 2023

Published in SN Operations Research Forum (Search for Journal in Brave)

Full work available at URL https://arxiv.org/abs/2107.10738

zbMATH Keywords

lot sizing and schedulingrelax-and-fixmixed integer linear programming modelsreal-world instances

Mathematics Subject Classification ID

Linear programming (90C05) Approximation methods and heuristics in mathematical programming (90C59) Deterministic scheduling theory in operations research (90B35) Mixed integer programming (90C11) Inventory, storage, reservoirs (90B05)

Abstract: This paper addresses an integrated lot-sizing and scheduling problem in the industry of consumer goods for personal care, a very competitive market in which the good customer service level and the cost management show up in the competition for the clients. In this research, a complex operational environment composed of unrelated parallel machines with limited production capacity and sequence-dependent setup times and costs is studied. There is also a limited finished-goods storage capacity, a characteristic not found in the literature. Backordering is allowed but it is extremely undesirable. The problem is described through a mixed integer linear programming formulation. Since the problem is NP-hard, relax-and-fix heuristics with hybrid partitioning strategies are investigated. Computational experiments with randomly generated and also with real-world instances are presented. The results show the efficacy and efficiency of the proposed approaches. Compared to current solutions used by the company, the best proposed strategies yield results with substantially lower costs, primarily from the reduction in inventory levels and better allocation of production batches on the machines.

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Cited in

(1)

• Distance and matching-induced search algorithm for the multi-level lot-sizing problem with substitutable bill of materials

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