TY  - JOUR
TI  - Simulation Optimization for the Stochastic Economic Lot Scheduling Problem with Sequence-Dependent Setup Times
AB  - We consider the stochastic economic lot scheduling problem (SELSP) with lost sales and random demand, where switching between products is subject to sequence-dependent setup times. We propose a solution based on simulation optimization using an iterative two-step procedure which combines global policy search with local search heuristics for the traveling salesman sequencing subproblem. To optimize the production cycle, we compare two criteria: minimizing total setup times and evenly distributing setups to obtain a more regular production cycle. Based on a numerical study, we find that a policy with a balanced production cycle outperforms other policies with unbalanced cycles.
DO  - http://dx.doi.org/10.1016/j.ijpe.2014.05.006
SP  - 170
EP  - 176
UR  - http://www.sciencedirect.com/science/article/pii/S0925527314001625
PY  - 2014-01-01
JO  - International Journal of Production Economics
AU  - Löhndorf, Nils 
AU  - Riel, Manuel 
AU  - Minner, Stefan 
ER -