Three stage dynamic heuristic for multiple plants capacitated lot sizing with sequence-dependent transient costs. (January 2019)

• Record Type: Journal Article
• Authors: Abdullah, Sari; Shamayleh, Abdulrahim; Ndiaye, Malick
• Is Part Of: Computers & industrial engineering. Volume 127(2019)
• Page Start: 1024
• Page End: 1036
• Publication Date: 2019-01
• Subjects: Supply chain -- Petrochemical -- Demand planning -- Scheduling -- Sequencing -- Mixed-integer linear programming; Engineering -- Data processing -- Periodicals; Industrial engineering -- Periodicals; 620.00285
• DOI: 10.1016/j.cie.2018.11.035
• Languages: English
• ISSNs: 0360-8352

Abstract

Highlights: Motivated by real problem for one of the world biggest chemical companies. Demand planning problem for a petrochemical industry four tiers supply chain. Dynamic Iterative 3-stage Dynamic heuristic for the NP hard problem. Quality solutions and acceptable computational time provided by the heuristic. Abstract: In this paper we investigate the demand planning problem for a petrochemical industry four tiers supply chain that integrates lot-sizing, scheduling with sequence dependent transient costs, transportation and warehousing decisions between suppliers, plants, warehouses, and customers. The problem was modeled using Mixed-Integer Linear Programming (MILP) and featuring a setup carryover and sub-tours elimination constraints. The problem is NP-Hard; therefore, an iterative three stage heuristic was developed which provides quality solutions with a very acceptable computational time. The heuristic computational efficiency was tested on different problem instances of different sizes, and the reported results were within a range of 0.09–2.00% gap from optimality.