Bernardo Almada-Lobo

Single machine multi-product capacitated lot sizing with sequence-dependent setups

In production planning in the glass container industry, machine-dependent setup times and costs are incurred for switch overs from one product to another. The resulting multi-item capacitated lot-sizing problem has sequence-dependent setup times and costs. We present two novel linear mixed-integer programming formulations for this problem, incorporating all the necessary features of setup carryovers. The compact formulation has polynomially many constraints, whereas the stronger formulation uses an exponential number of constraints that can be separated in polynomial time. We also present a five-step heuristic that is effective both in finding a feasible solution (even for tightly capacitated instances) and in producing good solutions to these problems. We report computational experiments.

Single and parallel machine capacitated lotsizing and scheduling

We propose a general-purpose heuristic approach combining metaheuristics and mixed integer programming to find high quality solutions to the challenging single- and parallel-machine capacitated lotsizing and scheduling problem with sequence-dependent setup times and costs. Commercial solvers fail to solve even medium-sized instances of this NP-hard problem; therefore, heuristics are required to find competitive solutions. We develop construction, improvement and search heuristics all based on MIP formulations. We then compare the performance of these heuristics with those of two metaheuristics and other MIP-based heuristics that have been proposed in the literature, and to a state-of-the-art commercial solver. A comprehensive set of computational experiments shows the effectiveness and efficiency of the main approach, a stochastic MIP-based local search heuristic, in solving medium to large size problems. Our solution procedures are quite flexible and may easily be adapted to cope with model extensions or to address different optimization problems that arise in practice.

Hybrid simulation-optimization methods: A taxonomy and discussion

Abstract The possibilities of combining simulation and optimization are vast and the appropriate design highly depends on the problem characteristics. Therefore, it is very important to have a good overview of the different approaches. The taxonomies and classifications proposed in the literature do not cover the complete range of methods and overlook some important criteria. We provide a taxonomy that aims at giving an overview of the full spectrum of current simulation–optimization approaches. Our study may guide researchers who want to use one of the existing methods, give insights into the cross-fertilization of the ideas applied in those methods and create a standard for a better communication in the scientific community. Future reviews can use the taxonomy here described to classify both general approaches and methods for specific application fields.

Lot sizing and scheduling: industrial extensions and research opportunities

The editorial section of International Journal of Production Research provides information about industrial extensions and research opportunities in the fields of lot sizing and scheduling in industries. Some of the papers published in the journal reveal that the processing industry provides significant opportunities for conducting research in these areas. The scheduling of production lots and their sizing is an area of increasing research attention within the wider field of production planning and scheduling. The close relationship between lot sizing and scheduling in many industrial applications makes it essential that these decisions are made simultaneously to use capacity efficiently. Traditional models have been increasingly refined to incorporate more detail and integrate lot sizing with scheduling. Researchers and practitioners worldwide have been making efforts to incorporate more specificities of the production environment in their models besides the integration of several independent self-contained research fields.

The impact of food perishability issues in the vehicle routing problem

Highly perishable food products can lose an important part of their value in the distribution process. We propose a novel multi-objective model that decouples the minimization of the distribution costs from the maximization of the freshness state of the delivered products. The main objective of the work is to examine the relation between distribution scenarios and the cost-freshness trade-off. Small size instances adapted from the vehicle routing problem with time windows are solved with an @?-constraint method and for large size instances a multi-objective evolutionary algorithm is implemented. The computational experiments show the conflicting nature of the two objectives.

Integrated pulp and paper mill planning and scheduling

This article describes a real-world production planning and scheduling problem occurring at an integrated pulp and paper mill (P&P) which manufactures paper for cardboard out of produced pulp. During the cooking of wood chips in the digester, two by-products are produced: the pulp itself (virgin fibers) and the waste stream known as black liquor. The former is then mixed with recycled fibers and processed in a paper machine. Here, due to significant sequence-dependent setups in paper type changeovers, sizing and sequencing of lots have to be made simultaneously in order to efficiently use capacity. The latter is converted into electrical energy using a set of evaporators, recovery boilers and counter-pressure turbines. The planning challenge is then to synchronize the material flow as it moves through the pulp and paper mills, and energy plant, maximizing customer demand (as backlogging is allowed), and minimizing operation costs. Due to the intensive capital feature of P&P, the output of the digester must be maximized. As the production bottleneck is not fixed, to tackle this problem we propose a new model that integrates the critical production units associated to the pulp and paper mills, and energy plant for the first time. Simple stochastic mixed integer programming based local search heuristics are developed to obtain good feasible solutions for the problem. The benefits of integrating the three stages are discussed. The proposed approaches are tested on real-world data. Our work may help P&P companies to increase their competitiveness and reactiveness in dealing with demand pattern oscillations.

Capacitated lot-sizing and scheduling with sequence-dependent, period-overlapping and non-triangular setups

In production planning, sequence dependent setup times and costs are often incurred for switchovers from one product to another. When setup times and costs do not respect the triangular inequality, a situation may occur where the optimal solution includes more than one batch of the same product in a single period—in other words, at least one sub tour exists in the production sequence of that period. By allowing setup crossovers, flexibility is increased and better solutions can be found. In tight capacity conditions, or whenever setup times are significant, setup crossovers are needed to assure feasibility. We present the first linear mixed-integer programming extension for the capacitated lot-sizing and scheduling problem incorporating all the necessary features of sequence sub tours and setup crossovers. This formulation is more efficient than other well known lot-sizing and scheduling models.

Neighbourhood search meta-heuristics for capacitated lot-sizing with sequence-dependent setups

We address a problem that often arises in industry, the multi-item capacitated-lot-sizing and scheduling problem with sequence-dependent setup times and costs. Powerful commercial solvers fail to solve even medium-sized instances of this NP-hard problem, therefore we employ a tabu search and a variable neighbourhood search meta-heuristic to solve it and compare the performance of these meta-heuristics over time. In contrast to the majority of the literature on this topic, the solution representation explicitly considers production quantities and setup variables, which enables us to develop fast search heuristics. A comprehensive set of computational experiments shows the effectiveness and efficiency of the proposed approaches in solving medium- to large-sized problems.

Multiple machine continuous setup lotsizing with sequence-dependent setups

We address the short-term production planning and scheduling problem coming from the glass container industry. A furnace melts the glass that is distributed to a set of parallel molding machines. Both furnace and machine idleness are not allowed. The resulting multi-machine multi-item continuous setup lotsizing problem with a common resource has sequence-dependent setup times and costs. Production losses are penalized in the objective function since we deal with a capital intensive industry. We present two mixed integer programming formulations for this problem, which are reduced to a network flow type problem. The two formulations are improved by adding valid inequalities that lead to good lower bounds. We rely on a Lagrangian decomposition based heuristic for generating good feasible solutions. We report computational experiments for randomly generated instances and for real-life data on the aforementioned problem, as well as on a discrete lotsizing and scheduling version.

Supplier selection in the processed food industry under uncertainty

This paper addresses an integrated framework for deciding about the supplier selection in the processed food industry under uncertainty. The relevance of including tactical production and distribution planning in this procurement decision is assessed. The contribution of this paper is three-fold. Firstly, we propose a new two-stage stochastic mixed-integer programming model for the supplier selection in the process food industry that maximizes profit and minimizes risk of low customer service. Secondly, we reiterate the importance of considering main complexities of food supply chain management such as: perishability of both raw materials and final products; uncertainty at both downstream and upstream parameters; and age dependent demand. Thirdly, we develop a solution method based on a multi-cut Benders decomposition and generalized disjunctive programming. Results indicate that sourcing and branding actions vary significantly between using an integrated and a decoupled approach. The proposed multi-cut Benders decomposition algorithm improved the solutions of the larger instances of this problem when compared with a classical Benders decomposition algorithm and with the solution of the monolithic model.