Simulation Optimization for the Stochastic Economic Lot Scheduling Problem with Sequence-Dependent Setup Times

Löhndorf, Nils and Riel, Manuel and Minner, Stefan (2014) Simulation Optimization for the Stochastic Economic Lot Scheduling Problem with Sequence-Dependent Setup Times. International Journal of Production Economics, 157. pp. 170-176. ISSN 0925-5273

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Abstract

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 leads to lower cost than other policies with unbalanced cycles. (authors' abstract)

Item Type: Article
Additional Information: To see the final version of this paper please visit the publisher's website. Access to the published version requires a subscription. The original publication is available at www.elsevier.com.
Keywords: Inventor / Multi-Product / Lot-Sizing and Scheduling / Stochastic Demand / Sequence-Dependent Setups / Simulation Optimization
Divisions: Departments > Informationsverarbeitung u Prozessmanag. > Produktionsmanagement
Version of the Document: Accepted for Publication
Depositing User: ePub Administrator
Date Deposited: 05 Dec 2014 12:00
Last Modified: 15 Jul 2020 15:47
Related URLs:
FIDES Link: https://bach.wu.ac.at/d/research/results/66663/
URI: https://epub.wu.ac.at/id/eprint/4398

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