Single-Stage Resource Allocation and Economic Lot Scheduling on Multiple, Nonidentical Production Lines

Ramesh Bollapragada and Uday Rao
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Ramesh Bollapragada: Bell Laboratories, Lucent Technologies, Room 2L-515, 101 Crawfords Corner Road, Holmdel, New Jersey 07733
Uday Rao: Graduate School of Industrial Administration, Carnegie-Mellon University, Pittsburgh, Pennsylvania 15213

Management Science, 1999, vol. 45, issue 6, 889-904

Abstract: This paper focuses on simultaneous resource allocation, lot-sizing, and scheduling in a multimachine, deterministic ELSP environment. We consider the problem of apportioning item production to distinct manufacturing lines with different costs and capabilities (production rates). The objective is to minimize the long-run average production, setup, inventory, and shortage penalty costs (due to lost sales). Restricting attention to rotation schedules, we develop a concave minimization model of the problem, generate heuristic solutions and a lower bound on the cost of any feasible solution. Computational experiments indicate that our heuristic solution is within a few percent of the lower bound. We also investigate sensitivity of costs to model parameters, and illustrate how our model may be used to determine target values for equipment utilization.

Keywords: lot-sizing; scheduling; resource allocation (search for similar items in EconPapers)
Date: 1999
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Citations: View citations in EconPapers (7)

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Persistent link: https://EconPapers.repec.org/RePEc:inm:ormnsc:v:45:y:1999:i:6:p:889-904

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