Lot-sizing for industrial symbiosis. (October 2021)

• Record Type: Journal Article
• Authors: Suzanne, Elodie; Absi, Nabil; Borodin, Valeria; van den Heuvel, Wilco
• Is Part Of: Computers & industrial engineering. Volume 160(2021)
• Publication Date: 2021-10
• Subjects: Production planning -- Two-level lot-sizing -- By-product -- Industrial symbiosis -- Lagrangian decomposition; Engineering -- Data processing -- Periodicals; Industrial engineering -- Periodicals; 620.00285
• DOI: 10.1016/j.cie.2021.107464
• Languages: English
• ISSNs: 0360-8352

Abstract

Highlights: Addressing a lot-sizing problem for an industrial symbiosis between two actors. Studying a two-level problem with intermediate flows and inventory capacities. Investigating several variants of a solution method based on Lagrangian decomposition. Discussing various collaboration policies for full and none information sharing. Abstract: Waste accumulation in landfills, global warming and the need to preserve finite raw materials push governments and industries to shift towards a circular economy. Industrial symbiosis represents a sustainable way of sharing resources and converting unavoidable production residues into useful and added-value products. In this context, we introduce a new production planning problem arisen between two production units (PU) within an industrial symbiosis. During the production process of a main product, a production residue is generated by the first PU, which is subsequently either used as raw materials by the second PU, or disposed of. The second PU can also purchase raw materials from an external supplier. The resulting combined production planning problem has been formulated as a two-level single-item lot-sizing problem. We prove that this problem is NP -Hard irrespective of the production residue, namely unstorable, or storable with a limited capacity. To efficiently solve this problem, a heuristic based on Lagrangian decomposition is proposed. Extensive numerical experiments highlight the effectiveness of the proposed solution method. The impact of the collaborative framework, in which the production plans of each PU are brought together, has been studied via a comparative analysis of different decentralized and centralized collaboration policies. Valuable insights derived from this analysis are subsequently used to discuss the managerial implications of setting up an industrial symbiosis between a supplier of by-products and its receiver.