Risk-averse two-stage stochastic programming for assembly line reconfiguration with dynamic lot sizes

Yuchen Li, Ming Liu, Francisco Saldanha-da-Gama and Zaoli Yang

Omega, 2024, vol. 127, issue C

Abstract: In this paper, a comprehensive optimization problem is developed for a composite of an assembly line reconfiguration problem with multiple lines and a capacitated lot-sizing problem. Multiple products are considered, whose demand is uncertain and is dynamically forecasted. The production planner is assumed to be risk-averse, and decisions are made contingent upon the risk preference. To model the problem, a stochastic program with two stages is utilized. A solution approach is devised using a divide-and-conquer algorithm, which incorporates a set of valid inequalities. The effectiveness and efficiency of the proposed solution approach are assessed through a series of computational tests. Finally, a case study focusing on an engine production process is presented, leading to the derivation of several valuable insights.

Keywords: Assembly line rebalancing; Lot-sizing; Multiple lines; Stochastic demand; Risk aversion (search for similar items in EconPapers)
Date: 2024
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Citations: View citations in EconPapers (2)

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DOI: 10.1016/j.omega.2024.103092

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