A simulation–optimization approach for capacitated lot-sizing in a multi-level pharmaceutical tablets manufacturing process

Michael Simonis and Stefan Nickel

European Journal of Operational Research, 2025, vol. 324, issue 1, 49-61

Abstract: This paper discusses an iterative simulation–optimization approach to estimate high-quality solutions for the multi-level capacitated lot-sizing problem with linked lot sizes and backorders (MLCLSP-L-B) based on probabilistic demand. It presents the application of the Generalized Uncertainty Framework (GUF) to the MLCLSP-L-B. The research provides an exact mathematical problem formulation and a variable neighborhood search (VNS) algorithm for the GUF. The evaluation procedure uses anonymized real-world data of multi-level pharmaceutical tablets manufacturing processes. It compares the GUF against a two-stage stochastic programming (SP) approach from the literature regarding manufacturing costs and customer service levels. Finally, planning rules and managerial insights are given for the tablets manufacturing processes.

Keywords: Pharmaceutical tablets manufacturing; Lot-sizing; MLCLSP-L-B; Simulation–optimization; Variable neighborhood search (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ejores:v:324:y:2025:i:1:p:49-61

DOI: 10.1016/j.ejor.2025.01.028

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