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A Heuristic Approach for Determining Lot Sizes and Schedules Using Power-of-Two Policy.pdf

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A Heuristic Approach for Determining Lot Sizes and Schedules Using Power-of-Two Policy.pdf

Hindawi Publishing Corporation Journal of Applied Mathematics and Decision Sciences Volume 2007, Article ID 53606, 18 pages doi:10.1155/2007/53606 Research Article A Heuristic Approach for Determining Lot Sizes and Schedules Using Power-of-Two Policy Esra Ekinci and Arslan M. Ornek Received 17 August 2006; Revised 18 December 2006; Accepted 18 January 2007 Recommended by John Bell We consider the problem of determining realistic and easy-to-schedule lot sizes in a mul- tiproduct, multistage manufacturing environment. We concentrate on a speciﬁc type of production, namely, ﬂow shop type production. The model developed consists of two parts, lot sizing problem and scheduling problem. In lot sizing problem, we employ bi- nary integer programming and determine reorder intervals for each product using power- of-two policy. In the second part, using the results obtained of the lot sizing problem, we employ mixed integer programming to determine schedules for a multiproduct, multi- stage case with multiple machines in each stage. Finally, we provide a numerical example and compare the results with similar methods found in practice. Copyright © 2007 E. Ekinci and A. M. Ornek. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, dis- tribution, and reproduction in any medium, provided the original work is properly cited. 1. Background and motivation In practice, companies basically use single-stage models in order to ﬁnd easy answers for production lot sizing and scheduling problem ignoring the multistage characteristics of their production facilities. However, multistage systems have received a considerable attention in the literature. Fundamental articles about deterministic demand condition were published early in the 1970s and the 1980s. Extensions of Harris’ basic EOQ model which considered serial, assembly and distribution systems as well as more general system structure