Quotation Transchel, Sandra, Minner, Stefan, Kallrath, Josef, Löhndorf, Nils, Eberhard, Ulrich. 2011. A hybrid general lot-sizing and scheduling formulation for a production process with a two-stage product structure. International Journal of Production Research 49 (9): 2463-2480.




Tailored for a complex application in the process industry, this article examines a multi-product production planning and scheduling problem with sequence-dependent setup cost and times. The manufacturing process is characterised by a two-stage structure where the sequencing problem occurs on the first level and contribution margin, holding cost, penalty cost are accounted on the second level. We present a hybrid mixed-binary optimisation model based on the general lot-sizing and scheduling problem [Fleischmann, B. and Meyr, H. 1997. The general lotsizing and scheduling problem. OR Spectrum, 19 (1), 11-21], which combines discrete and continuous-time elements within a standard inventory and lot-size (I&L) formulation. Since the I&L formulation does not provide sharp linear programming-relaxation bounds, we present two alternative reformulations based on a transportation problem. In a numerical study inspired by real industry data, we show that on average, both reformulations yield significant improvements in computation time and integrality gap.


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Publication's profile

Status of publication Published
Affiliation WU
Type of publication Journal article
Journal International Journal of Production Research
Citation Index SCI
WU Journalrating 2009 A
WU-Journal-Rating new FIN-A, INF-A, STRAT-B, WH-B
Language English
Title A hybrid general lot-sizing and scheduling formulation for a production process with a two-stage product structure
Volume 49
Number 9
Year 2011
Page from 2463
Page to 2480
Reviewed? Y
URL http://dx.doi.org/10.1080/00207543.2010.532910


Löhndorf, Nils (Former researcher)
Eberhard, Ulrich (BASF SE, Luswigshafen, Germany)
Kallrath, Josef (University of Florida, Gainesville, United States/USA)
Minner, Stefan (Technische Universität München, Germany)
Transchel, Sandra (Kühne Logistics University, Germany)
Institute for Production Management (Taudes) (Details)
Research areas (ÖSTAT Classification 'Statistik Austria')
1121 Operations research (Details)
5300 Economics (Details)
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