A MIP based heuristic for capacitated MRP systems |
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Authors: | Cemalettin Öztürk Arslan M Örnek |
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Affiliation: | Department of Industrial Systems Engineering, Izmir University of Economics, Izmir, Turkey |
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Abstract: | Although Material Requirements Planning (MRP) is the most widely used production planning tool in today’s manufacturing companies, its inability to perform an exhaustive capacity planning, lack of a comprehensive and integrated shop floor extension and using constant and inflated lead times necessitate intelligent methods for developing cost effective production plans. A single optimization model might be employed to overcome these limitations, but it would be intractable to use it in large manufacturing systems. Hence, in this paper, we propose a heuristic method called Capacity Allocater and Scheduler, CAS, to eliminate drawbacks of MRP systems and provide solutions for large-scale instances. The CAS procedure, based on iteratively solving relaxed Mixed Integer Programming (MIP) models, is built on a lot sizing and scheduling framework, which considers both supply alternatives and lot size restrictions simultaneously. Finally, we give a detailed numerical example to demonstrate how CAS may be used in practice, and provide our concluding remarks. |
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Keywords: | Multi-level capacitated lot-sizing problem with linked lots and backorders (MLCLPLB) Mathematical programming Heuristics Decomposition |
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