2013
Authors
Amorim, P; Alem, D; Almada Lobo, B;
Publication
INDUSTRIAL & ENGINEERING CHEMISTRY RESEARCH
Abstract
In food supply chain planning, the trade-off between expected profit and risk is emphasized by the perishable nature of the goods that it has to handle. In particular, the risk of spoilage and the risk of revenue loss are substantial when stochastic parameters related to the demand, the consumer behavior, and the spoilage effect are considered. This paper aims to expose and handle this trade-off by developing risk-averse production planning models that incorporate financial risk measures. In particular, the performance of a risk-neutral attitude is compared to the performance of models taking into account the upper partial mean and the conditional value-at-risk. Insights from an illustrative example show the positive impact of the-risk-averse models in operational performance indicators, such as the amount of expired products. Furthermore, through an extensive computational experiment, the advantage of the conditional value-at-risk model is evidenced, as it is able to dominate the solutions from the upper partial mean for the spoilage performance indicator. These advantages are tightly related to a sustainable view of production planning, and they can be achieved at the expense of controlled losses in the expected profit.
2013
Authors
Figueira, G; Santos, MO; Almada Lobo, B;
Publication
COMPUTERS & OPERATIONS RESEARCH
Abstract
Mathematical formulations for production planning are increasing complexity, in order to improve their realism. In short-term planning, the desirable level of detail is particularly high. Exact solvers fail to generate good quality solutions for those complex models on medium- and large-sized instances within feasible time. Motivated by a real-world case study in the pulp and paper industry, this paper provides an efficient solution method to tackle the short-term production planning and scheduling in an integrated mill. Decisions on the paper machine setup pattern and on the production rate of the pulp digester (which is constrained to a maximum variation) complicate the problem. The approach is built on top of a mixed integer programming (MIP) formulation derived from the multi-stage general lotsizing and scheduling problem. It combines a Variable Neighbourhood Search procedure which manages the setup-related variables, a specific heuristic to determine the digester's production speeds and an exact method to optimize the production and flow movement decisions. Different strategies are explored to speed-up the solution procedure and alternative variants of the algorithm are tested on instances based on real data from the case study. The algorithm is benchmarked against exact procedures.
2013
Authors
Amorim, P; Belo Filho, MAF; Toledo, FMB; Almeder, C; Almada Lobo, B;
Publication
INTERNATIONAL JOURNAL OF PRODUCTION ECONOMICS
Abstract
Joint production and distribution planning at the operational level has received a great deal of attention from researchers. In most industries these processes are decoupled by means of final goods inventory that allow for a separated planning of these tasks. However, for example, in the catering industry, an integrated planning framework tends to be more favorable due to the perishable nature of the products that forces a make-to-order production strategy. So far this planning problem has only been addressed by allowing the batching of orders. The main contribution of this paper is to extend this approach and prove the importance of lot sizing for make-to-order systems when perishability is explicitly considered. The value of considering lot sizing versus batching is further investigated per type of production scenario. Overall, results indicate that lot sizing is able to deliver better solutions than batching. On average, for the improved instances, the cost savings ascend to 6.5% when using lot sizing. The added flexibility of lot sizing allows for a reduction on production setup costs and both fixed and variable distribution costs. The savings derived from lot sizing are enhanced by customer oriented time windows and production systems with non-triangular setups.
2013
Authors
Amorim, P; Pinto Varela, T; Almada Lobo, B; Barbosa Povoa, APFD;
Publication
COMPUTERS & CHEMICAL ENGINEERING
Abstract
In the last years, several researchers from two different academic communities, the Operations Research and the Process Systems Engineering, have been developing mathematical formulations for the lot-sizing and scheduling of single-stage continuous processes with complex setup structures. This problem has been intensively studied due to its importance to a wide range of industries where a single-stage approach is suitable for production planning. This is the case of the glass container, beer, and dairy production. Recent works have been performed by both mentioned communities, however, no intense communication between these research efforts has been observed. This work attempts a systematic analysis on recent formulation developments of both communities. Based on the result of this comparison, a reformulation is proposed that outperforms in the majority of the cases the previous existent formulations for a set of systematically generated random instances.
2013
Authors
Guimaraes, L; Klabjan, D; Almada Lobo, B;
Publication
EUROPEAN JOURNAL OF OPERATIONAL RESEARCH
Abstract
We present a novel mathematical model and a mathematical programming based approach to deliver superior quality solutions for the single machine capacitated lot sizing and scheduling problem with sequence-dependent setup times and costs. The formulation explores the idea of scheduling products based on the selection of known production sequences. The model is the basis of a matheuristic, which embeds pricing principles within construction and improvement MIP-based heuristics. A partial exploration of distinct neighborhood structures avoids local entrapment and is conducted on a rule-based neighbor selection principle. We compare the performance of this approach to other heuristics proposed in the literature. The computational study carried out on different sets of benchmark instances shows the ability of the matheuristic to cope with several model extensions while maintaining a very effective search. Although the techniques described were developed in the context of the problem studied, the method is applicable to other lot sizing problems or even to problems outside this domain.
2013
Authors
Figueira, G; Furlan, M; Almada Lobo, B;
Publication
IFAC Proceedings Volumes (IFAC-PapersOnline)
Abstract
Disturbance Management is a major issue in process industries like the pulp and paper (P&P) industry. In this paper, a case study in an integrated P&P mill is examined. Production plans for the whole mill need not only to be optimized concerning company's indicators, but also to be robust so that disturbances can be avoided. We present a simulation-optimization approach that generates plans, correctly weighting their quality (regarding various indicators) and robustness. A discrete-event simulation model replicates the dynamics of implementation and adaptation of production plans in practice. The simulation model gives then feedback to optimization, in order to enhance the analytical model, which is thus able to generate robust plans. © IFAC.
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