Profit maximization in simultaneous lot-sizing and scheduling problem |
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Authors: | Narges Sereshti Mehdi Bijari |
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Institution: | Industrial Engineering Department, Isfahan University of Technology, Isfahan, Iran |
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Abstract: | This paper extends the simultaneous lot-sizing and scheduling problem, to include demand choice flexibility. The basic assumption in most research about lot-sizing and scheduling problems is that all the demands should be satisfied. However, in a business with a goal of maximizing profit, meeting all demands may not be an optimum decision. In the profit maximization simultaneous lot-sizing and scheduling problem with demand choice flexibility, the accepted demand in each period, lot-sizing and scheduling are three problems which are considered simultaneously. In other words the decisions pertaining to mid-term planning and short-term planning are considered as one problem and not hierarchically. According to this assumption, the objective function of traditional models changes from minimizing costs to maximizing profits. |
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Keywords: | Lot-sizing Scheduling Profit maximization Demand choice flexibility |
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