Introduction to Computational Optimization Models for Production Planning in a Supply Chain

by Vo, Stefan; Woodruff, David L.

• ISBN13: 9783642067556
• ISBN10: 3642067557
• Edition: 2nd
• Format: Paperback
• Copyright: 2010-11-09
• Publisher: Springer Nature

Summary

The book begins with an easy-to-read introduction to the concepts associated with the creation of optimization models for production planning. These concepts are then applied to well-known planning models, namely mrp and MRP II. From this foundation fairly sophisticated models for supply chain management are developed. Another unique feature is that models are developed with an eye toward implementation. In fact, there is a chapter that provides explicit examples of implementation of the basic models using a variety of popular, commercially available modeling languages. The new edition is updated and provides extensions.

Table of Contents

Introduction	p. 1
Supply Chains and Production Planning	p. 1
Optimization	p. 2
Components of Supply Chain Management	p. 4
Scope of this Book	p. 5
Optimization Modeling	p. 7
Abstraction	p. 7
Symbols	p. 9
Variables, Data, Subscripts, and Math	p. 9
Sets	p. 11
Objective Functions and Constraints	p. 11
Finding Solutions	p. 14
Data	p. 15
A Few Words About Uncertainty	p. 15
Solvers and Model Structure	p. 16
Implementing the Models in this Book	p. 17
Starting with an mrp Model	p. 19
An Example	p. 19
mrp Mechanics	p. 20
mrp Data	p. 22
mrp Optimization Formulation	p. 24
Discussion of mrp	p. 26
Troubles	p. 27
Virtues	p. 29
Extending to an MRP II Model	p. 31
MRP II Mechanics	p. 31
MRP II Data and Constraints	p. 34
Discussion of MRP II	p. 36
Changeover Modeling Considerations	p. 38
A Straightforward Modification	p. 38
Production that Spans Time Buckets	p. 39
Parallel Machines	p. 40
Sequence Dependent Changeovers	p. 41
A Few Remarks About Changeovers	p. 42
A Better Model	p. 45
A Cost Based Objective Function	p. 45
Costs	p. 45
Objective Function	p. 47
Overtime and Extra Capacity	p. 49
A Simple Model	p. 49
Complications	p. 50
Allowing Tardiness	p. 51
A Simple Model	p. 52
Complications	p. 53
Objective Function Issues	p. 54
The Model	p. 55
Extensions to the Model	p. 59
Substitutes, Multiple Routings and Subcontractors	p. 59
Penalizing Changes to the Plan	p. 62
End-of-horizon Effects and Minimum Inventories	p. 64
Modeling Product Movement and Transport	p. 66
Simple Product Movement and Shipping	p. 67
Expedited Shipping	p. 67
Fixed Costs and Consolidations	p. 67
Transportation Discounts	p. 69
Discussion of Transportation Modeling	p. 70
Summarizing the Model	p. 70
Aggregation and Consolidation	p. 71
Consolidating Resources	p. 73
Aggregating Parts	p. 74
Discussion of Disaggregation	p. 79
Implementation Examples	p. 81
AMPL	p. 84
mrp Model	p. 86
mrp Data	p. 87
Results of Running mrp	p. 88
MRPII Model	p. 89
Data for MRPII	p. 90
SCPc Model	p. 91
Data for SCPc	p. 94
GAMS	p. 96
mrp and MRPII Models	p. 98
SCPc Model	p. 101
Maximal MPL	p. 106
mrp Model	p. 107
MRPII	p. 109
SCPc	p. 110
OPL	p. 114
mrp	p. 115
MRPII	p. 118
SCPc	p. 118
Xpress-Mosel	p. 123
mrp Model	p. 125
mrp Data	p. 128
mrp Results	p. 129
MRPII Model	p. 129
SCPc Model	p. 130
Solutions	p. 135
MIPs and Relaxations	p. 135
Branch and Bound	p. 138
Special Variable Types	p. 141
Semi-continuous Variables	p. 141
General Integer Variables	p. 142
Special Ordered Sets	p. 143
Heuristic Search Methods	p. 145
A Brief Primer on Heuristics	p. 146
Abstract Formulation and Solution Representation	p. 147
Example of an Embedded Problem	p. 149
Neighborhoods and Evaluation Functions	p. 150
Simulated Annealing	p. 154
Tabu Search	p. 156
Genetic and Evolutionary Algorithms	p. 157
Constraint Programming	p. 160
Some Stochastic Extensions	p. 163
Lead Times and Congestion	p. 164
The Issues	p. 165
Load Dependent Lead Times	p. 167
Solver Issues	p. 170
Example	p. 172
Complications and Discussion	p. 173
Scenarios	p. 174
The Issues	p. 175
A Multi-stage Probabilistic Model With Recourse	p. 178
Progressive Hedging	p. 180
A PH based Heuristic for SCPc	p. 184
Research Directions and References	p. 187
Supply Chain Management	p. 187
The Evolution of Logistics	p. 188
Closed Loop Supply Chains and Reverse Logistics	p. 191
The Importance of Information Technology	p. 191
Supply Contracts	p. 198
mrp, MRP II and Beyond	p. 200
The Early Steps	p. 200
Supply Chain Planning	p. 201
Production Planning and Scheduling	p. 202
Lot Sizing Models	p. 202
Planning and Inventory Control	p. 208
Machine Scheduling	p. 211
Aggregation and Part Families	p. 212
Load Dependent Lead Times	p. 214
Transportation	p. 219
Optimization	p. 223
Exact Methods	p. 225
Heuristic Search Methods	p. 225
Progressive Hedging	p. 229
Simulation	p. 230
Modeling	p. 231
Bibliography	p. 233
Index	p. 253
Table of Contents provided by Ingram. All Rights Reserved.