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Lotsizing and Scheduling on Parallel Machines with Sequence-Dependent Setup Costs

Sungmin Kang, Kavindra Malik, L. Joseph Thomas

Management Science · 1999 · Volume 45 · Issue 2

DOI: 10.1287/mnsc.45.2.273

Abstract

Industrial lotsizing and scheduling pose very difficult analytical problems. We propose an unconventional model that deals with sequence-dependent setup costs in a multiple-machine environment. The sequence-splitting model splits an entire schedule into subsequences, leading to tractable subproblems. An optimization approach based on a column generation/branch and bound methodology is developed, and heuristically adapted to test problems including five real-world problem instances gathered from industry.

Keywords

lotsizing, scheduling, sequence-dependent setup costs, column generation, branch and bound

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