Stochastic lot sizing problem with controllable processing times

Esra Koca, Hande Yaman and M. Selim Aktürk

Omega, 2015, vol. 53, issue C, 1-10

Abstract: In this study, we consider the stochastic capacitated lot sizing problem with controllable processing times where processing times can be reduced in return for extra compression cost. We assume that the compression cost function is a convex function as it may reflect increasing marginal costs of larger reductions and may be more appropriate when the resource life, energy consumption or carbon emission are taken into consideration. We consider this problem under static uncertainty strategy and α service level constraints. We first introduce a nonlinear mixed integer programming formulation of the problem, and use the recent advances in second order cone programming to strengthen it and then solve by a commercial solver. Our computational experiments show that taking the processing times as constant may lead to more costly production plans, and the value of controllable processing times becomes more evident for a stochastic environment with a limited capacity. Moreover, we observe that controllable processing times increase the solution flexibility and provide a better solution in most of the problem instances, although the largest improvements are obtained when setup costs are high and the system has medium sized capacities.

Keywords: Stochastic lot sizing; Controllable processing times; Second order cone programming (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S030504831400142X
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:jomega:v:53:y:2015:i:c:p:1-10

Ordering information: This journal article can be ordered from
http://www.elsevier.com/wps/find/supportfaq.cws_home/regional
https://shop.elsevie ... _01_ooc_1&version=01

DOI: 10.1016/j.omega.2014.11.003

Access Statistics for this article

Omega is currently edited by B. Lev

More articles in Omega from Elsevier
Bibliographic data for series maintained by Catherine Liu ().