Group technology in a hybrid flowshop environment: A case study

This paper addresses the problem of products grouping in the tile industry. This production system can be classified as a three-stage hybrid flowshop with sequence dependent and separable setup times. Main objective has been to identify a set of families integrated by products with common features. This classification would help Production Managers to minimize changeover time, allowing them to further reduce production times. The basic concept of “exploiting similarities”, taken from the Group Technology (GT) philosophy, has been used to address the problem in a creative way. A new “coefficient of similarity” between each of the products, has been defined and used as a parameter, allowing products to be grouped through a heuristic method. This research has already been applied in the framework of a real case, getting quite positive results (actual reduction in both setup and production costs, easier long-horizon planning and short-horizon scheduling, more accurate set up time estimates for new products, etc.).     

On the Effect of Product Variety in Production–Inventory Systems

In this paper, we examine the effect of product variety on inventory costs in a production–inventory system with finite capacity where products are made to stock and share the same manufacturing facility. The facility incurs a setup time whenever it switches from producing one product type to another. The production facility has a finite production rate and stochastic production times. In order to mitigate the effect of setups, products are produced in batches. In contrast to inventory systems with exogenous lead times, we show that inventory costs increase almost linearly in the number of products. More importantly, we show that the rate of increase is sensitive to system parameters including demand and process variability, demand and capacity levels, and setup times. The effect of these parameters can be counterintuitive. For example, we show that the relative increase in cost due to higher product variety is decreasing in demand and process variability. We also show that it is decreasing in expected production time. On the other hand, we find that the relative cost is increasing in expected setup time, setup time variability and aggregate demand rate. Furthermore, we show that the effect of product variety on optimal base stock levels is not monotonic. We use the model to draw several managerial insights regarding the value of variety-reducing strategies such as product consolidation and delayed differentiation.     

Simultaneous lotsizing and scheduling on parallel machines

This paper addresses the simultaneous lotsizing and scheduling of several products on non-identical parallel production lines (heterogeneous machines). The limited capacity of the production lines may be further reduced by sequence dependent setup times. Deterministic, dynamic demand of standard products has to be met without back-logging with the objective of minimizing sequence dependent setup, holding and production costs.The problem is heuristically solved by combining the local search metastrategies threshold accepting (TA) and simulated annealing (SA), respectively, with dual reoptimization. Such a solution approach has already proved to be successful for the single machine case. The solution quality and computational performance of the new heuristics are tested by means of real-world problems gathered from industry.     

Integrated production scheduling and distribution planning in dairy supply chain by hybrid modelling

In this paper we address the production scheduling and distribution planning problem in a yoghurt production line of the multi-product dairy plants. A mixed integer linear programming model is developed for the considered problem. The objective function aims to maximize the benefit by considering the shelf life dependent pricing component and costs such as processing, setup, storage, overtime, backlogging, and transportation costs. Key features of the model include sequence dependent setup times, minimum and maximum lot sizes, overtime, shelf life requirements, machine speeds, dedicated production lines, typically arising in the dairy industry. The model obtains the optimal production plan for each product type, on each production line, in each period together with the delivery plan. The hybrid modelling approach is adopted to explore the dynamic behavior of the real world system. In the hybrid approach, operation time is considered as a dynamic factor and it is adjusted by the results of the simulation and optimization model iteratively. Thus, more realistic solutions are obtained for the scheduling problem in yoghurt industry by using the iterative hybrid optimization-simulation procedure. The efficiency and applicability of the proposed model and approach are demonstrated in a case study for a leading dairy manufacturing company in Turkey.     

Economic lot scheduling with uncontrolled co-production

The aim of this paper is to analyze the effects of uncontrolled co-production on the production planning and lot scheduling of multiple products. Co-production occurs when a proportion of a certain production comes out as another product. This is typical in the process industry where quality and process specifications can lead to diversified products. We assume that there is no demand substitution and each product has its own market. Furthermore, we assume that co-production cannot be controlled due to technical and/or cost considerations. We introduce two models that extend the common cycle economic lot scheduling (ELSP) setting to include uncontrolled co-production. In the first model we do not allow for shortages and derive the optimal cycle time expression. In the second model, we allow for planned backorders and characterize the optimal solution in closed form. We provide a numerical study to gain insight about co-production. It seems that the cycle time increases with co-production rate and utilization of the system. The effect of co-production on long-term average cost does not exhibit a certain characteristic.     

The effect of product variety on supply-chain performance

We present a stylized model for analyzing the effect of product variety on supply-chain performance for a supply chain with a single manufacturer and multiple retailers. The manufacturer produces multiple products on a shared resource with limited capacity and the effect of changeovers on supply-chain cost is due primarily to setup time rather than setup cost. We show that the expected replenishment lead time and the retailers' costs are concave increasing in product variety and that the increase is asymptotically linear. Thus, if setup times are significant, the effect of product variety on cost is substantially greater than that suggested by the risk-pooling literature for perfectly flexible manufacturing processes, where the cost increases proportionally to the square root of product variety. We demonstrate that disregarding the effect of product variety on lead time can lead to poor decisions and can lead companies to offer product variety that is greater than optimal. The results of our analysis enable decision-makers to quantify the effect of product variety on supply-chain performance and thus to determine the optimal product variety to offer. The results can also be used to evaluate how changes in the manufacturing process, the supply-chain structure, and the customer demand rate can improve the performance of supply chains with high product variety.     

Simultaneously scheduling multiple turns for steel color-coating production

This paper investigates a large-scale scheduling problem in the iron and steel industry, called color-coating production scheduling (CCPS). The problem is to generate multiple production turns for the galvanized coils that dynamically arrive from upstream lines within a given scheduling horizon, and at the same time determine the sequence of these turns so that the productivity and product quality are maximized while the production cost and the number of generated turns are minimized. We formulate this problem as a mixed integer nonlinear program and propose a tabu search heuristic to obtain satisfactory solutions. Results on real production instances show that the presented model and heuristic are more effective and efficient with comparison to manual scheduling. A practical scheduling system for CCPS combining the model and heuristic has been developed and successfully implemented in a major iron and steel enterprise in China.     

Evaluating focused factory benefits with queuing theory

In this paper, we study the benefits of a focused factory using lead-time as a performance measure. Specifically, we model a production process, using multi-class (multiple product types), general interarrival and processing time distributions with multiple machines (GI/G/c) queuing models for deriving each product’s mean lead-time. We also perform simulations for estimating the standard deviation of lead times. There are two product types: a standard and a customized product. The customized product has a more variable demand pattern than the standard product, and also requires additional processing time (setup and run time) in its production process. We assume that management is willing to sacrifice the lead-time performance of the customized product in favor of improved performance for the standard product. The paper shows that focusing the factory is more attractive for plants operating at higher utilization, and manufacturing products that have higher processing time and demand variability differentials between product types.     

A decomposition approach for the General Lotsizing and Scheduling Problem for Parallel production Lines

This paper presents a novel solution heuristic to the General Lotsizing and Scheduling Problem for Parallel production Lines (GLSPPL). The GLSPPL addresses the problem of simultaneously deciding about the sizes and schedules of production lots on parallel, heterogeneous production lines with respect to scarce capacity, sequence-dependent setup times and deterministic, dynamic demand of multiple products. Its objective is to minimize inventory holding, sequence-dependent setup and production costs. The new heuristic iteratively decomposes the multi-line problem into a series of single-line problems, which are easier to solve. Different approaches for decomposition and for the iteration between a modified multi-line master problem and the single-line subproblems are proposed. They are compared with an existing solution method for the GLSPPL by means of medium-sized and large practical problem instances from different types of industries. The new methods prove to be superior with respect to both solution quality and computation time.     

A new lot sizing and scheduling heuristic for multi-site biopharmaceutical production

Biopharmaceutical manufacturing requires high investments and long-term production planning. For large biopharmaceutical companies, planning typically involves multiple products and several production facilities. Production is usually done in batches with a substantial set-up cost and time for switching between products. The goal is to satisfy demand while minimising manufacturing, set-up and inventory costs. The resulting production planning problem is thus a variant of the capacitated lot-sizing and scheduling problem, and a complex combinatorial optimisation problem. Inspired by genetic algorithm approaches to job shop scheduling, this paper proposes a tailored construction heuristic that schedules demands of multiple products sequentially across several facilities to build a multi-year production plan (solution). The sequence in which the construction heuristic schedules the different demands is optimised by a genetic algorithm. We demonstrate the effectiveness of the approach on a biopharmaceutical lot sizing problem and compare it with a mathematical programming model from the literature. We show that the genetic algorithm can outperform the mathematical programming model for certain scenarios because the discretisation of time in mathematical programming artificially restricts the solution space.     

Balancing stochastic two-sided assembly lines: A chance-constrained,piecewise-linear,mixed integer program and a simulated annealing algorithm

Two-sided assembly lines are often designed to produce large-sized products, such as automobiles, trucks and buses. In this type of a production line, both left-side and right-side of the line are used in parallel. In all studies on two-sided assembly lines, the task times are assumed to be deterministic. However, in real life applications, especially in manual assembly lines, the tasks may have varying execution times defined as a probability distribution. The task time variation may result from machine breakdowns, loss of motivation, lack of training, non-qualified operators, complex tasks, environment, etc. In this paper, the problem of balancing two-sided assembly lines with stochastic task times (STALBP) is considered. A chance-constrained, piecewise-linear, mixed integer program (CPMIP) is proposed to model and solve the problem. As a solution approach a simulated annealing (SA) algorithm is proposed. To assess the effectiveness of CPMIP and SA algorithm, a set of test problems are solved. Finally, computational results indicating the effectiveness of CPMIP and SA algorithm are reported.     

Controlling mixed-model assembly lines in real-time by using distributed systems

The production of large quantities is frequently handled by the use of assembly lines. These systems yield significant reductions of variable costs for the production of homogenous products. But due to increasing competition and differentiated demands, today it is no longer sufficient to offer only standardized products. To combine the wishes and requirements of the customers with the advantages of an efficient flow line production, different product variants are produced simultaneously on the same mixed-model assembly line. Therefore, the task of controlling such production processes is becoming more complex since an efficient production execution has to be realized in spite of the occurring oscillating work content of the different variants. Additionally, unforeseen disturbances in the production process can compromise its planned execution. To deal with these problems, this paper proposes a new approach for an adaptive real-time control of assembly lines that extends the pure sequencing problem by the integration of specific line-balancing aspects and the mapping of consequences of possible disturbance scenarios. Such a scenario could be, for instance, the loss of a worker, a material bottleneck or a machine breakdown. To guarantee an efficient continuation of the production process, the controlling instrument reacts instantly to a disturbance by adapting the current plan in a very short time, consisting of only a few cycle times, to reduce the additional costs caused by the disturbances.     

Mathematical model for scheduling operations in cascaded continuous processing units

The scenario under consideration involves n cascaded continuous processing units responsible for processing m product lines. Each product line needs to be processed by all the units in the same sequence, and has dedicated finite capacity storage tanks before and after every processing unit. A unit can process only one product line at a time. Inputs for all the product lines arrive continuously and simultaneously on the input side of the first unit in the sequence. There are multiple intermediate due dates for the final products. An optimal schedule for the units calls for a trade-off among spillage costs, upliftment failure penalties and changeover costs. A mathematical model is developed for the purpose and the resulting MINLP is linearized using standard techniques. The MILP has been tested using GAMS for three units and three product lines as encountered in a refinery situation. The model could output optimal schedules for a ten day scheduling horizon within reasonable time.     

A CS-AdaBoost-BP model for product quality inspection

Quality inspection is essential in preventing defective products from entering the market. Due to the typically low percentage of defective products, it is generally challenging to detect them using algorithms that aim for the overall classification accuracy. To help solve this problem, we propose an ensemble learning classification model, where we employ adaptive boosting (AdaBoost) to cascade multiple backpropagation (BP) neural networks. Furthermore, cost-sensitive (CS) learning is introduced to adjust the loss function of the basic classifier of the BP neural network. For clarity, this model is called a CS-AdaBoost-BP model. To empirically verify its effectiveness, we use data from home appliance production lines from Bosch. We carry out tenfold cross-validation to evaluate and compare the performance between the CS-AdaBoost-BP model and three existing models: BP neural network, BP neural network based on sampling, and AdaBoost-BP. The results show that our proposed model not only performs better than the other models but also significantly improves the ability to identify defective products. Furthermore, based on the mean value of the Youden index, our proposed model has the highest stability.

     

Formulating and solving a multi-mode resource-collaboration and constrained scheduling problem (MRCCSP)

The main motivation of this study is to provide, for the first time, a formulation and solution for a class of production scheduling problems (as in cluster tools) characterized mainly by resource collaboration to perform an operation and while allowing batches and considering alternative production methods. We develop a formulation for the new problem and term it a multiple mode per operation, resource collaboration, and constrained scheduling problem (MRCCSP). Some of the important new characteristics we consider are: multiple products (families); multiple orders (jobs) per family; precedence restrictions among the operations that constitute a job; alternative modes for the performance of an operation (each of which needs a set of collaborating resources) may be defined; complementary and exclusive restrictions between operation-modes; batch production is allowed; and setup times may depend on sequence and batch-size. The objective of the MRCCSP is to minimize makespan. We formulate the MRCCSP as a mixed integer linear programming model, and acknowledging the considerable size of the monolithic formulation required, we prescribe a specific method to achieve size reduction. Finally, a customized branch and bound algorithm for optimally solving this problem is proposed and examined experimentally.     

Batch machine production with perishability time windows and limited batch size

This article provides a theoretical analysis of the problem of scheduling jobs in batches by family on a batch-processing machine, in the presence of perishability time windows of equal length. The problem arises in the context of production planning in a microbiological laboratory, and has application in wafer-fab production and for wireless broadcasting. The combined features of multiple families and time windows are new to the literature. The study is restricted to unit job processing times. We prove that the problem is NP-hard, thus solving an open problem by Uzsoy [24]. A Dynamic Programme is developed, with running time polynomial in the input variables of maximum batch size, the number of families and the length of the demand time horizon. In addition, we show that an heuristic approach to minimising the perishability time window can provide a 2-approximation to the optimum.     

考虑交货期的生产运输联合优化问题研究

结合企业实际场景研究了考虑交货期的多个工厂、多条生产线、单一产品的生产与运输联合优化问题.已知客户订单需求量和交货时间窗,考虑了各条生产线在不同时段的生产能力约束,在满足交货时间窗约束的前提下,以生产、存储、运输费用之和极小化为目标建立了生产与运输联合优化问题的混合整数规划模型,通过分析模型结构证明了在不考虑固定生产成本的情况下,模型等价于最小费用最大流问题,得出了直接用Gurobi软件求解模型的可行性.最后利用具体算例进行模拟计算并与企业目前采用的顺序优化方法进行对比,发现采取联合优化策略可以明显降低总费用,并随着单位运输成本的增加,联合优化策略较顺序优化策略的优势在不断扩大.研究成果为企业制定生产与运输计划提供了理论依据.     

Integrating operations and marketing decisions using delayed differentiation of products and guaranteed delivery time under stochastic demand

In this research, we integrate the issues related to operations and marketing strategy of firms characterized by large product variety, short lead times, and demand variability in an assemble-to-order environment. The operations decisions are the inventory level of components and semi-finished goods, and configuration of semi-finished goods. The marketing decisions are the products price and a lead time guarantee which is uniform for all products. We develop an integrated mathematical model that captures trade-offs related to inventory of semi-finished goods, inventory of components, outsourcing costs, and customer demand based on guaranteed lead time and price.The mathematical model is a two-stage, stochastic, integer, and non-linear programming problem. In the first stage, prior to demand realization, the operation and marketing decisions are determined. In the second stage, inventory is allocated to meet the demand. The objective is to maximize the expected profit per-unit time. The computational results on the test problems provide managerial insights for firms faced with the conflicting needs of offering: (i) low prices, (ii) guaranteed and short lead time, and (iii) a large product variety by leveraging operations decisions.     

Order selection optimization in hybrid make-to-order and make-to-stock markets

The order selection process for firms operating in markets characterized by standard products as well as strong product customization, is directly tied to the customer and to the associated production costs. This order selection process must be inter-functional with marketing and manufacturing in deciding which orders to accept, specially since the selection criteria used by marketing and manufacturing tend to differ. This paper develops a methodology/mathematical programming model for improving this coordination through an optimal selection of sales orders, such that the total financial contribution of selected orders is maximized. Based on an actual case study in the pigment manufacturing industry, the methodology provides for a user interface that addresses both the manufacturing and marketing department. More importantly, such a marketing/production coordination allows for improved performance in increasingly segmented (customized) markets, while continuing standard product lines as well.     

Performance evaluation of transfer lines with general repair times and multiple failure modes

The paper proposes a decomposition method for evaluating the performance of transfer lines where machines can fail in multiple modes and can be repaired with non-exponential times. Indeed, while times to machine failure can be often modeled using exponential distributions with acceptable accuracy, times to repair are very rarely observed to be exponentially distributed in actual systems. This feature limits the applicability of existing approximate analytical methods to real production lines. In this paper, the discrete acyclic phase-type distribution is used to model the repair process, for each failure mode of the machines composing the system. The exact analysis of the two-machine system is used as a building block for the decomposition method, proposed to study multi-stage lines. Numerical results show the high accuracy of the developed method in estimating the average throughput and buffer levels.