Phase I: Bottleneck Planning

Abstract

In this phase, we are confronted with the following single stage lot-sizing and scheduling problem: Multiple product families have to be produced. A deterministic, discrete demand volume for every product family is given for pre-defined periods. Producing a product family consumes machine capacity, which is scarce. When changing from one product family to another, setup costs and setup times are incurred, reducing machine capacity. When a product family unit is not produced in its demand period, product family-specific inventory or back-order costs are incurred. There are several identical machines in parallel. The problem is to find an optimal production plan consisting of optimal production periods and quantities (lot-sizing) as well as machine assignments and product family sequences on the assigned machines (scheduling).

Are you ready to battle?